The due diligence process conducted on third-party managers emphasizes a thorough evaluation of the firm’s:

  • Organization and people
  • Investment philosophy and process
  • Historical performance, both in terms of return and risk management
  • Terms and conditions

On-site visits are a necessary component of the evaluation process, helpful for assessing qualitative factors such as:

  • Passion and drive
  • Organizational resources
  • Firm culture
  • The quality of personnel

An appropriate alignment of interests is critical.  We prefer management firms which are:

  • Independent
  • Employee-owned
  • Have a high degree of personal investment in their strategies

We often use a combination of both “active” and “passive” investment strategies for certain components of a portfolio’s asset allocation.