Manager of Managers Approach
June 6, 2019 - To win in investments, we have to play as a team.
The success of any one player, or in this case manager, should not trump the team working to achieve its ultimate goal of completing the play. Instead, the players, i.e. managers, create diversity on the team as each brings their own unique talents to the field. When we play together, one team with a variety of players, the odds of winning are in our favor.
HighGround’s principal investment approach utilizes a manager of managers concept. HighGround, as an investment adviser, sets the investment policy, determines the asset allocation and calculates an appropriate spending policy for the endowment fund(s). In addition, HighGround works with clients utilizing their Investment Policy Statement to develop customized investment portfolios with their own spending policies using HighGround asset class Funds and outside mutual funds.
Benefits of Multi-Manager Investing
So, what players has HighGround placed on your team?
HighGround hires third-party, world-class investment managers to make the day-to-day investment selections of portfolio securities. Currently, HighGround has over 50 investment managers (because no single manager is the best at managing every asset class) with separately managed discretionary mandates, commingled funds or mutual funds. In most cases, HighGround elects to utilize multiple managers in a single investment fund with each manager playing a specific role complementary to each other. These managers diversify the fund composition, control investment risks and provide exposure to a broader set of investment opportunities than what might otherwise be available by a single manager approach.
What We Look For in a Manager
Just because a player makes the team, doesn’t mean the hard work is over – far from it. Like the high school football reviewing film on Saturday morning after the Friday Night Lights, our investment managers are continuously reviewed to make sure their performance is still benefitting the team.
After an investment manager is hired and added to a portfolio, ongoing due diligence consists of periodic conference calls and in-person meetings to review portfolios and discuss questions and issues. In-person meetings usually occur annually, and in many cases more frequently, either in HighGround’s office or the manager’s office. A periodic review of each manager is also conducted which includes documentation of any changes in the firm’s investment staff, investment process or portfolios. Staff monitors the manager’s performance and risk characteristics on a monthly basis. Any adverse developments with a specific manager triggers an immediate review of the manager.
We Have Your Back
When establishing an investment plan, you want a team that is going to work harder and faster to help you win. The team will work more efficiently when its comprised of players that each bring their unique talents and skills to the field, working on your behalf.