Manager Selection & Due Dilligence
At Ethos, portfolio construction occurs in coordination with a deep due diligence process. The review of an investment manager is not just limited to the selection stage; it is an ongoing process.
From a broad universe of thousands of possible managers, we distill the universe by both quantitative factors and qualitative measures. After a rigorous selection process, and how that manager fits into the arrangement of other managers in a portfolio, we monitor and track research to understand any conditions that may exist that could impact our decision to utilize a particular manager.
The investment manager search and selection process was designed to include institutionally credible managers that previously have not been available to private clients.
While our manager selection process utilizes sophisticated quantitative analytics, it is the qualitative component that is most discriminating relative to manager quality. Among other key items, this process evaluates:
- The quality and quantity of manager resources dedicated to specific strategies.
- The alignment of interests through analysis of performance and compensation incentives.
- The manager’s culture and business mission and its relationship to investment performance.
- The frequency and transparency of manager communications
We continuously monitor our high conviction ideas – making sure that all of our managers continue to stay within the parameters of their program. You can count on us to watch for red flags, advice you when performance isn’t up to par, and adjust investment decisions as necessary. It’s all part of our ongoing due diligence process.