THE CLEARSTEAD Research Process
THE ENGINE OF OUR ORGANIZATION
Our research & analysis team is the foundation of ensuring the success of our clients’ investment portfolios. This function is not outsourced; it’s the engine of our organization. With weekly meetings, deep fundamental and quantitative research, and disciplined committee structures, our professionals excel in a culture of internal debate and checks and balances. We’re nimble enough to make swift portfolio changes to adapt to changing markets, but steadfast in ensuring we’re not driven by emotions.
This team takes pride in the ability to work for a firm that is independent, giving them the freedom to match discipline with creativity. By bringing new investment ideas to the table that challenge the status quo, we are able to introduce and integrate new opportunities to both institutional and private client portfolios.
Defining and documenting client objectives
Before we can create a roadmap, we need to know where we’re going. We thoroughly examine our clients’ spending needs, legal constraints, beliefs, culture, and time horizon. We then set goals that factor in inflation and fees with an emphasis on assessing and controlling risk. And we create relevant, peer-based benchmarks to assess performance.
Investment Strategy Development
Once we have a clear set of objectives and benchmarks, we begin careful construction of the portfolio using two basic inputs: one that is quantitative, based on the Black-Litterman model, and one that is qualitative, based on the input of the professionals on our Investment Research Committee. We synthesize these two streams of thought to optimize asset allocation, including a clear rationale for how each asset will help the client achieve its objectives.
Tactical Asset Allocation
Once the portfolio is built, the real work begins. We monitor and adjust asset allocations based on input from the Investment Research Committee and Asset Allocation Committee, which meet regularly to discuss positioning of portfolios, capturing short-to-medium-term opportunities while maintaining a long-term view point.
Investment Manager Research
Our due diligence process for investment managers considers both statistical data and intangibles that contribute to sustainable success. We factor in their investment philosophy and methodology and check to see whether they practice what they preach. In addition to in-person assessments and on-site visits, we also vet investment managers and strategies through the IRC and only select those who earn its stamp of approval. Our independence ensures objective analysis. Through our experience, we have created the “Clearstead Research Principles” to guide us.