Insights

Why Use a Multi-Manager Approach?

Why Use a Multi-Manager Approach?

We utilize a multi-manager method to portfolio management. We believe such an approach improves diversification and can “smooth out the ride” through market cycles. Instead of a single investment manager’s approach to markets and belief system, we provide investors with multiple managers, multiple strategies, and multiple investing methodologies all working across multiple time frames.

To reference one of the Tactical Funds we use, there are five independent sub-advisors, each managing a “sleeve” of the fund. Together, the subadvisors currently utilize ten different investing strategies – all selected for their ability to complement each other within the fund. We believe this approach reduces the risk of a “singular failure,” which occurs when a manager/strategy underperforms or is out of favor.

For advisors and individual investors, implementing such an approach can be problematic as each manager must exist in their own account or fund. In addition, ongoing oversight over a multitude of managers/strategies requires significant time and expertise, something most advisors/investors simply don’t possess.

Another benefit of our approach is the firm’s Investment Committee that oversees each manager and strategy on a daily basis. We employ a multitude of oversight metrics to ensure that each manager remains consistent with their strategy objective. It is also the job of the Investment Committee to determine the fund’s allocation to each manager, which can shift over time.

In summary, we allow advisors and their clients to utilize a broadly diversified group of managers and strategies – all in a single fund.

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