Our Investment Philosophy

Our Investment Philosophy

Managing multi-manager portfolios requires extensive experience in manager selection, portfolio construction, risk management and operations. It also requires the relationships, experience, and reputation to identify and access managers with proven track records under diverse economic and capital market conditions. ECM believes that there are only a limited number of truly top-tier hedge funds.

At ECM, all members of the investment team, including senior professionals, are actively engaged in manager due diligence. We strive to maintain an appropriate level of concentration in terms of the number of managers with which our portfolios invest. We believe that this discipline helps to ensure that we invest in our best ideas and at a size that is meaningful enough to impact performance.
Our team adheres to a disciplined, multi-tiered quantitative and qualitative process to select, construct, and monitor portfolios:

  • Utilize our proprietary network to identify new managers, evaluate them and conduct in-depth, on-site evaluations of those who exceed our threshold;
  • Perform on-site operational due diligence to fully vet each manager's business and operations;
  • Assess investment, business and portfolio merits to determine sizing positions within the context of the entire portfolio;
  • Perform ongoing monitoring of managers, both from an investment and operational perspective; and
  • Conduct risk management analysis using both quantitative and qualitative evaluation processes.
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