The power of conviction and diversification
We manage stock and bond portfolios using a unique approach known as the Multiple Portfolio Manager System, which gives our clients access to the very best investment ideas from several different managers. This results in broadly diversified portfolios that are positioned to do well in many different market environments.
The system combines the best of two seemingly contradictory forces—independence and teamwork.
Here’s how it works: The portfolio is divided into portions that are independently overseen by different managers. Each manager has a unique style (such as growth or value) and invests in a concentrated portfolio of his or her highest conviction ideas. In addition, a portion of the portfolio is devoted to ideas selected by our research analysts.
The combination results in a highly diversified portfolio overseen by managers with complementary investment approaches. This process provides continuity and consistency. The portfolio’s success isn’t tied to any one manager’s results, and the diversity of views, experiences and skills helps to achieve consistent results over the long term. In fact, manager compensation is based on rolling four- and eight-year periods to encourage long-term thinking.
The benefits of the Multiple Portfolio Manager System include:
- A portfolio that incorporates the best ideas of several experienced managers
- Added diversification
- A process that’s sustainable and repeatable
- Representation of multiple market capitalizations, geographies and investment styles
