While markets are generally efficient at pricing investors' short-term expectations, more often than not these expectations are often formed with little appreciation for underlying economic risks or long-term earnings prospects.  

We believe that public markets are mostly transactionally efficient, but price inefficient, with investors typically overpaying for liquidity and stability while underpaying for long term earnings growth.  By understanding what drives earnings, economies and investor preferences, differentiating between "risk" and volatility, and by employing an active risk-management framework, we believe there is an opportunity to out-perform the broader market over the mid-to-long term while reducing systematic risk. We employ a "top down" approach to market and sector selection, and value/GARP approach to asset selection.

There are ten key steps to our portfolio construction process:

1. Macroeconomic Analysis
2. Capital Markets Research
3. Strategic Themes & Opportunities
4. Regional and Sector Management
5. Quantitative and Qualitative Analysis
6. Risk Management Framework
7. TSA Investment Thesis 
8. Portfolio Construction
9. Investment Recommendations
10. Review (continuous)

For more information about our portfolio construction or management process, please contact our office.