Sourcing: Identify superior managers by using existing manager relationships, industry contacts, and extensive research.
Due Diligence: Perform due diligence to verify:
- Managers focus on inefficient market sectors
- Investment decisions based on market fundamentals and inefficiencies
- Significant personal capital investment in funds
- Emphasis on performance over capital raising
- Strong historical performance audited by professionally accredited firm.
Portfolio Construction: Construct portfolios that manage risk through diversified fund investment strategies and managers.
Risk Management: Fund allocations are determined to achieve diversification by investment strategy and manager style and characteristics.
Monitoring:
- Manage on-going risk and diversification through continual evaluation of managers and review of shifts in correlations between strategies and managers.
- Monitor performance and analytics through frequent direct contact by SPI principals with fund managers to reaffirm current allocations and/or assess the need to rebalance or terminate managers.