Greycourt identifies top-tier managers in a variety of asset classes by first articulating a clear and concise point of view with regard to specific investment opportunities. The idea generation and discussion that leads to this important first stage of the manager search process comes from our experienced advisors, senior members of our research staff and, often, our clients and approved managers.
Greycourt’s research team is responsible for identifying investment managers that are able to profitably invest in a manner that is consistent with Greycourt’s overall view of the markets and investment thesis. These investment opportunities are sometimes very specific–such as identifying a tactical opportunity to invest in the mezzanine debt of mid-market companies–while other times opportunities are more broadly defined and best expressed, for example, through a low-cost, fundamentally-based index solution.
While statistical and quantitative review of the universe of potential managers is an important and necessary component of this part of the process, Greycourt’s research team also spends significant time determining whether managers are approaching their investment opportunities in a way that is efficient and appropriate for the specific needs of our clients. In doing so, the research team ensures that structural characteristics such as investment terms, fees, and liquidity constraints are given thorough consideration early in the process.
The output of this early stage of research yields a short list of skilled managers, from which the research team proposes one or more candidates for selection as an approved manager that can be utilized in client portfolios. This stage of the research process includes intensive due diligence on the manager, from both an investment and operational standpoint. Multiple members of Greycourt’s research and advisory teams visit with candidate managers on-site and off-site, conduct detailed quantitative analysis and regression studies to understand factor exposure and correlation with relevant benchmark markets, and utilize internal and external resources to scrutinize the background of key personnel and their firms.
Each step of the research process is documented and discussed along the way with Greycourt’s Investment Committee. The ultimate result is a formal recommendation document that is drafted by the primary research analyst and is reviewed by the senior research director in charge of the given asset class. These recommendation documents and the supporting data, analysis and conclusions are discussed and debated by all members of the firm’s investment staff and voted upon by the Greycourt Investment Committee.