Investment Management
We offer a range of asset allocation and differentiated investment strategies for investors that do not have an interest in financial planning and prefer to limit the scope of engagement with us to investment management only. A list of our core investment strategies is outlined below.
Entasis Asset Allocation Strategies
Our asset allocation strategies are customized to each client’s goals incorporating predefined objectives, risk tolerance, time horizon, financial horizon, financial information, liquidity needs and other various suitability factors. Individual strategies are based on our Core/Completion philosophy and rely on our investment manager selection process, our decision-making structure for investment vehicles and our equity and fixed income research.
Investment Manager Selection
Our process includes a qualitative analysis of the investment team experience, team decision making structure, compensation, succession plan, investment process, risk management, trading and culture among other factors. Our quantitative criteria differ by asset class allowing us to evaluate the unique characteristics inherent in each. We review a manager’s performance cycle, optimal positioning of the manager with other portfolio investments and to assess the risk impact on the overall asset allocation strategy.
Investment Vehicle Selection
Our investment vehicle decision making structure is focused on cost management, diversification, tax considerations and investment minimums. Generally, we use individual securities to gain targeted exposures, account for taxes and/or improve cash flow management. Investment managers are used to increase diversification or provide exposure to less efficient market segments. Exchange traded funds are used to make tactical relative value shifts, manage costs or increase diversification.
Individual Equity Research
Our stock selection process focuses on companies traded on U.S. exchanges. We emphasize companies with strong or improving competitive positions, healthy balance sheets that provide management with decision making flexibility and valuations that are attractive on an absolute and relative basis. Our research process includes an in-depth analysis of a company’s financial statements, a review of competitors and industry dynamics and an assessment of company management and its tendencies.
Individual Bond Research
Our bond selection process focuses on companies with attractive liquidity characteristics that are experiencing price dislocation relative to their sector, risk profile and rating. We attempt to isolate and invest in bonds that are experiencing price dislocation relative to fundamental value. Our risk management attempts to measure and manage volatility of returns and potential default risk. Investment decisions incorporate our broad views of interest rates and our proprietary modeling of fair value across the spectrum of maturities.
Entasis Dynamic Total Return
Differentiated Sources of Potential Value / Largely Benchmark Agnostic
Investment Objective
The strategy seeks long-term capital appreciation. Over a complete market cycle the strategy will pursue returns from traditional equity and fixed income asset classes as well as non-traditional asset classes. Asset class exposure will vary by market opportunity and the outcomes of our research.
Investment Process Overview
The Entasis Dynamic Total Return strategy is designed to leverage our core research process to develop a differentiated and largely benchmark agnostic portfolio of investments from four primary opportunity segments: High Conviction Managers, Emerging Managers, Performance Reversion Opportunities and Diversifying Investments. Investments may have traits of one or more segments.
Investor Profile
- Long-term investor looking for a differentiated source of potential value creation
- Core asset allocation strategy already in place
- 5+ years of investment experience
- Moderate to high level of investment knowledge
- Comfortable with equity price volatility
Investment Risks
The strategy is subject to asset allocation risk and the risks of the underlying funds and ETFs in which it invests. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards as well as potential political and economic instability. These risks are magnified in emerging and frontier markets. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds.
Entasis High Income
Differentiated Sources of Income / Proactive Risk Management
Investment Objective
The strategy seeks high current income and long-term capital appreciation. The strategy has a secondary objective to mitigate significant downside volatility. Over a complete market cycle the strategy will pursue returns from traditional fixed income asset classes as well as non-traditional asset classes. Asset class exposure will vary by market opportunity and the outcomes of our research.
Investment Process Overview
Our core fixed income research process incorporates five value-added steps: Duration and yield curve management, capital allocation, vehicle selection, security selection and risk management. The Entasis High Income strategy is designed to leverage our core research process to identify a broad set of income-producing investments, including non-traditional asset classes, with the potential for capital appreciation. By targeting multiple source of income we believe we can generate high levels of income while proactively managing downside volatility.
Investor Profile
- Long-term cash flow focused investor
- Core asset allocation strategy already in place
- Comfortable with price volatility to achieve cash flow goal
- 5-10 year horizon with no investment principal needs
Investment Risks
The strategy is subject to asset allocation risk and the risks of the underlying funds and ETFs in which it invests. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards as well as potential political and economic instability. These risks are magnified in emerging and frontier markets. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds.