News

Core Values

Multi-management

Disciplined Investment Process

Core People

Core Solutions

Contact

Disciplined Investment Process

	"The founding principles of our company are independence, full open architecture and transparency. Each principle is embedded within our investment approach, where all steps are designed and structured to be fully traceable, giving our clients maximum insight into our decision-making process."
	Sadruddin Rejeb, Head of Research

Corestone's approach relies on a strong risk management foundation underpinning each pillar of our investment process, namely setting up the client investment plan, selecting managers, constructing and monitoring the portfolio.

Setting up the client investment plan

Taking into account the client’s long term goals and risk appetite, we establish a broad reference asset allocation in line with the current market environment. In addition, we allow for an opportunistic element to take advantage of extreme market events or extraordinary opportunities.

Sophisticated Manager Selection

The leading principle underpinning our manager selection is to have a forward-looking view. Our manager selection specialists assess a manager's future out-performance potential with the application of a highly analytical process, combining thorough qualitative due-diligence with a systematic quantitative evaluation of the track-record. The aim is to distinguish sustainable skills from hidden style betas and to get a deep knowledge of the underlying investment strategy. This allows for an appropriate allocation of each manager during the portfolio construction process.

Portfolio Construction

The construction of a multi-manager portfolio has historically been subject to several pitfalls. To go beyond the simple bundling of a handful of outperforming managers, we combine the managers emerging from our thorough bottom-up research process with a top-down asset/style allocation. This robust implementation of investment views and asset allocation is enabled by our internally developed multi-manager platform, which is leveraged by our investment team throughout the investment process. The deep understanding of the managers available for inclusion allows for controlled active-risk budgeting and a minimization of manager overlap to avoid over-diversification.

Risk Management & Monitoring

As markets are dynamic it is imperative to keep a close eye on the portfolio. Our goal is to catch problems as early as possible so that further research can be done or corrective action taken in a timely fashion. In designing our platform we chose to set up a management information system as opposed to a bookkeeping system which many others use. We are able to convert all underlying portfolio positions into aggregate exposures, which allows us to see what really matters in the portfolio. We track and analyse the historic decision-making of managers over a long period before we hire them. This view of each manager’s current positioning in the historical context enables us to see whether anything is out of order in the client portfolio.


	© 2007-2012 Corestone Investment Managers	The contents of this site are based upon sources of information believed to be reliable, but no warranty or declaration, either explicit or implicit, is given as to their accuracy or completeness. The information supplied is indicative only and is subject to change.