As your consultant, one of our most important functions is providing experienced insight into what comprises a qualified investment manager. Once we have formulated a written Investment Policy Statement and determined asset allocation and tax efficiency guidelines, we conduct comprehensive due diligence to identify the best managers to fill the specific asset categories outlined in the investment strategy. If this requires adding or replacing managers, we offer a structured, judicious approach.
Our screening process is focused on four key areas:
- People
- Philosophy
- Process
- Performance and Price
First, we identify the people responsible for implementing the investment strategy. This includes examining the experience and credentials of the portfolio managers, their tenure at the firm and turnover of key personnel. We also evaluate the research staff in a similar manner.
Second, we examine the philosophy of the firm’s overall investment strategy. In essence what do they believe in as investors.
Third, we focus on understanding the investment process. How does the firm identify the opportunity set from which they will build the investment portfolio?
Fourth, we analyze the historical performance to ensure that it is representative of an investment philosophy that has been successfully implemented over a variety of market cycles. We also segregate that portion of return attributable to the manager's investment expertise from overall market conditions.
Finally, we continuously conduct on-site personal interviews with key investment managers in order to narrow the field the most qualified candidates. In addition, our clients benefit from our years of experience working with managers from around the country as well as by our knowledge of the manager's reputation within the industry.
However, we must reiterate: Bidart & Ross has no affiliation, agreement or working relationship with any group, fund or particular manager. We are a completely independent firm, free of bias and therefore able to work exclusively on the behalf of our clients and their investments.