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Our Concentrated strategy is
designed for clients wishing to capitalize on the investment
team's stock-picking ability. A concentrated portfolio of
roughly 50 stocks selected through a unique team approach
allows clients to maximize the returns from stock selection
while maintaining adequate diversification. Due to the higher
concentration and the focus on stock-picking, benchmark risk
is relatively high in this strategy.
In this strategy:
- Stock selection takes precedence
over country allocation.
- The Chief Investment Officer
or a senior Portfolio Manager acts as a Coordinating Portfolio
Manager (CPM). The CPM invests a portion of the portfolio
and monitors the overall regional and industry allocations.
- Sub-portfolios are created within
the portfolio. The CPM assigns "stock picks" and
cash to each sub-portfolio; the allocation of picks and
cash helps to maintain broad regional diversification.
A Portfolio Manager, an Analyst group, or the CPM manages
each sub-portfolio, and the number of stock picks assigned
to it. Each sub-portfolio may only be invested within
a
staff member's region or industry of expertise. The size
of the portfolio is based on the allocated stock picks
and
cash allocated by the CPM.
- Our team of portfolio managers and
analysts select stocks from the bottom-up. The stock selection
process is rigorous, systematic and value-oriented. We conduct
numerous company visits throughout the world and utilize
our proprietary database and earnings forecasts to compare
stocks.
- While the majority of stocks held
in the Concentrated Strategy are also in our Broad Global Active
portfolios, and therefore go through our normal Investment
Committee review process, the final investment decision
within each sub-portfolio is made by the individual Portfolio
Manager or the CPM overseeing that portfolio
and does not require Investment Committee review or approval.
- Periodically, stock picks and cash
allotments for each sub-portfolio are reassigned by the
CPM as market conditions require.
- Frontier markets and smaller stocks
are included in the investment universe in order to capitalize
on market inefficiencies.
- Portfolios can be customized to
keep within client guidelines.
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