Manager Search and Selection

Equitas Capital Advisors employs a variety of qualitative and quantitative screening criterion in the manager search and selection process. Our goal is to identify and evaluate investment managers who consistently demonstrate superior overall attributes.

The qualitative factors we consider are often called the five P’s:

    The background and experience of the people who actually manage the Fund’s assets is just as important as the results they achieve.
    The investment philosophy of a money manager will shape the risk and return experience of the investor.
    We drill down to obtain a thorough understanding of their investment philosophy and risk controls to determine how they do what they do.
    An analysis of a manager’s underlying portfolio is essential in determining the consistency of the manager’s stated investment style with his actual investment decisions.
    The final measure is of the manager’s risk-adjusted performance over a number of market cycles and rolling periods.

The quantitative aspect of our analysis is supported by seven comprehensive databases of investment managers incorporating every possible type of portfolio–from mutual funds and commingled trusts to separately managed portfolio to limited partnerships. Investment performance is examined over a number of different market cycles for:

  • Consistency of Returns
    • Rolling Periods
    • Up Market – Down Market Capture
    • Portfolio Dispersion
    • Relative & Absolute Measures
  • Consistency of Investment Style
  • Dispersion in Investment Returns
  • Regression Statistics
  • Tracking Error

Equitas Capital Advisors is committed to a program of ongoing due diligence to ensure that once an investment manager is retained for the Fund that their firm remains in a position to recreate past successes.