GEM Process

Our Funnel Process

Our Funnel Process

  1. Investable Universe - Candidates for the GEM strategies are selected from applicable benchmark indexes, allowing for a diverse portfolio across industry and size.
  2. Identify Economic Regime - Factors can be over/underweighted to better suite the current economic environment.
  3. Multi-Factor Screen - Value | Quality | Momentum | etc.
  4. Fundamentals - Companies are further screened on fundamental characteristics (ROIC, management, volume, etc.)
  5. Model - The highest scoring stocks enter the model portfolio.
Our Rules

Our Rules

  • Avoid Overlap
  • Avoid Turnover
  • Avoid Co-Mingling
  • High Active Share
  • Know Your Junk
  • Best Ideas
  • Protect Downside
Process Services & Support

Process Services & Support

  • All Cashiering and Money Movements
  • Custom Cash Movement
  • Custom Fixed Income Portfolio Management
  • Execution of Platform Models
  • Execution of Advisor-driven models
  • Rebalancing Accounts (pre-set by request)
  • Custom Indexing Creation and Management
  • Custom (and Algorithmic) Gain/Loss Harvesting
  • Custom Unrealized Gain Transitions to a Target Model
  • Hedging of Concentrated Equity Holdings

OCIO Process

Ordinary Portfolios

Ordinary Portfolios

  • Usually consist of 25 open-end funds and 1 money market fund (no ETFs or individual stocks/bonds).
  • Average fund owns 836 securities. Due to redundancy of overlapping holdings, the portfolio indirectly holds 21,733 stocks and bonds (only 3,600 listed equities in the US).
    • Significant overlap in the stock holding throughout the portfolio which adds to increased transaction costs and to potentially higher instances of realized capital gain.
  • The average fund in the portfolio has an annual turnover of 65% per year.
    Owning this many securities leads to mediocre returns and is akin to owning a giant yet very expensive index fund.
Customized Portfolio Construction

Customized Portfolio Construction

  • Using some of the industry’s most sophisticated software to deconstruct the holdings in a portfolio to provide valuable insights on structure, efficiency, asset quality, costs and performance. This audit is not intended to serve as investment advice or as financial plan.
  • Our wealth advisors invest considerable amounts of time with clients understanding their specific needs.”
  • This information and insight is provided as a tool to help clients achieve their goal of building better portfolios.
    • Fewer holdings and less overlap has the potential to reduce costs (and taxes in non-qualified accounts) while generally contributing to better account performance.