Investment Manager Research

Overall Approach to Investment Manager Research

At Wurts & Associates, our manager research has only one objective: to find the investment managers that will best meet our clients' needs.

Initially, the historical performance of the managers in the database is put through a series of quantitative screens that help identify those able to provide consistent, superior results over a meaningful period of time.

We then focus our resources on understanding three key factors:

• First, we thoroughly analyze the manager's investment philosophy and process to ensure that it is clearly defined, logical and repeatable.
• Second, we examine the manager's overall organization, looking at such things as ownership structure, future plans and compensation and performance incentives. We also look beyond the firm level to focus on the investment team that has built the record to gauge the likelihood that it will stay in place. In our experience, no quantitative screen can replace the judgment and knowledge of our research team in assessing these factors.
• Third, we utilize a risk-budgeting approach to determine how potential managers will fit into the existing portfolio structure. We want to make sure any additions will complement the existing roster of managers.

Investment Manager Searches

In the case of a specific manager search prepared for a client, the parameters identifying the type of investment manager being sought is first determined. A list of qualified candidates is then compiled into a comprehensive Manager Search Book that is presented to the client. This report contains extensive comparative data on the respective managers, as well as detailed information on each. Wurts & Associates then assists our clients with the interview process and in making the final selection. We also work closely with our clients, as needed, in drafting the investment guidelines and contract for the new manager and in negotiating fees.

While the initial due diligence on an investment manager during the search process is very important, it is also essential that the client be kept informed of any changes or developments that could adversely impact their ability to manage the portfolio. Wurts & Associates continues to monitor and evaluate investment managers after they are hired to make sure this type of information is presented to our clients and, if necessary appropriate action can be taken in a timely manner.