The key criterion for the selection of an investment manager is the identification of a distinctive competitive edge that can generate significant positive alpha (excess return). A firm’s competitive edge may be derived from state of the art quantitative models, sophisticated analytics, elaborate trading systems, or cutting edge research. Strong leadership, unique strategic partnerships or relationships, critical thinking or unique insight may also distinguish a firm as a leader in their field.
An “edge” may be short-lived in the ever changing investment management world. In order to identify and assign mandates to managers with a sustainable competitive advantage UTAM explicitly distinguishes the edge that it believes the manager can provide. This is accomplished by conducting qualitative and quantitative analysis of managers on an ongoing basis and by being knowledgeable of the universe of managers available.
In addition to the key criterion, general criteria used to screen prospective investment managers include the organization, the ownership structure, the culture, the investment team, the investment philosophy and approach, the operations capability, the fee schedule and the investment track record.
The selection process is rigorous and disciplined. The goal is to engage investment managers with the ability and talent to generate significant alpha for a specific mandate while respecting stated risk tolerance parameters. Our methodology is designed to provide superior investment returns for all stakeholders, employees and affiliates.