Manager Due Diligence


In selecting investment strategies for clients, and underlying managers, we utilize sophisticated analytical tools, significant research resources and a database of thousands of investments including mutual funds, ETFs and independent investment managers. Fundamental to our process is on-going due diligence. In evaluating investments and managers, we consider historical track records, repeatable strategies, demonstrated risk control procedures, stable managements whose financial incentives are aligned with investors and superior thought leadership. Additionally, our partner, Fortigent, conducts over 500 face-to-face meetings with current and prospective managers a year—because that level of personal interaction can make all the difference.

Many other professionals will claim to provide similar scrutiny—but depending upon the financial incentives of their firm they may be required to recommend specific managers or investments. We experience none of those conflicts. We receive zero revenues from any managers so we can remain impartial and act solely as your Fiduciary.

Manager selection is especially crucial in non-traditional markets because success often comes from having an extraordinary level of expertise in a very narrow niche. Top managers in these markets tend to outperform their peers by a wide margin. In fact, the range from top performers to bottom performers is much wider than the range of performance experienced by traditional equity managers (shown in the chart below). As a result, accessing elite managers with proven track records and a disciplined process is crucial; and providing proactive, on-going due diligence is essential. That is what we do.