Services

Investment Manager Style Analysis

On a periodic basis, Equitas Capital Advisors will conduct an in-depth analysis of the style consistency of the Fund’s investment managers. After all, the Fund has engaged a number of investment managers, each with their own investment style and performance attributes, in accordance with the Asset Allocation Study and Investment Policy Statement. When an investment manager’s portfolio or style changes without warning the Fund is no longer as diversified as it once was.

Unless you are invested in an index, every manager will have some style drift. Many consultants tolerate no style drift from a manager. We have found this practice to be impractical and inefficient in portfolio construction.

At times a manager will need to tilt or underweight the portfolio for safety purposes. At Equitas, we monitor and track manager style drift and calculate if the drift has actually helped or hurt performance. Our report provides:

  • Graphic confirmation of investment style
    • Capitalization – large, mid or small cap
    • Style – growth, value or core
    • Illustration of the degree of consistency and the effects of style drift
  • Individual managers and portfolio composite
    • Illustrate individual portfolios and the composite portfolio
  • Verification of composite portfolio diversification

Style analysis is a valuable tool that Equitas Capital Advisors makes available to all of our clients.