Finding managers with strong historical returns is easy, there are many readily available databases for that. What is harder is understanding the true drivers of those returns and assessing whether the manager is someone who can add value consistently over the long-term, or is simply benefiting from a certain market environment or, worse, through taking an inappropriate level of risk.
CAM employs a highly specialized investment team of eight people who understand most investing strategies in depth, have often managed similar strategies themselves in the past, and speak the same language as the managers they are assessing.
Our manager selection framework includes a quantitative analysis of past returns, a qualitative analysis of the strategy’s expected performance under different market scenarios, and due diligence on the manager’s operational infrastructure and risk controls. We also emphasize various soft factors such as the level of managers’ motivation and alignment of interest, the firm’s compensation policies, their adherence to industry best practices on responsible investing and many others.