Objectives
Provide investors with a “best ideas” portfolio constructed to manage style bias, provide liquidity, and not burdened by hedge fund-style fees.
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Access to "high conviction" holdings of multiple managers we find exceptional
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Seeks to outperform the index
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Tax efficiency
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Style diversification
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Liquidity
Investment Approach
Cloverpoint utilizes its knowledge of niche investment managers and ability analyze is supported by a network of Endowment & Family Office CIOs for continuing manager intelligence.
The process identifies managers it believes have demonstrated an ability to consistently generate alpha. Quantitative analysis process identifies managers that demonstrate stock-picking skill within their target universes.
Typical Style Balance Targets
Portfolio Construction
The portfolio centers on a disciplined combination of high conviction ideas across multiple investment managers into a single, unified portfolio that is concentrated in "best ideas," but diversified by style.
Rather than allocating to multiple standalone funds for diversification - each with its own style, mandate, and inherent biases - this process attempts to extract the best individual positions from a universe of skilled managers and assembles them into a concentrated, thoughtfully constructed portfolio.
Advantages:
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Eliminates redundant diversification
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Reduces style bias
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Focuses on highest conviction stocks