WaterStreet Investment Consultants, LLC - Investment Manager Research

Identify Investment Managers

Skilled investment managers are often identified through industry contacts and peers. We also screen manager databases, attend industry conferences, respond to client and prospective client requests to review managers/investment opportunities, and review information provided by managers.

Gather and Analyze Data

We analyze quantitative data and qualitative characteristics of investment managers. Consistency of returns during up and down markets, risk assumed in achieving returns, and historical correlations to benchmarks are evaluated. Attribution analysis verifies style consistency and determines how returns were generated. Qualitative criteria we assess includes firm history, ownership structure, personnel caliber and career paths, consistency of investment process, quality of internal and external research, compliance, and risk controls.

Perform Due Diligence

Thorough knowledge of the managers we recommend requires analysts to perform ongoing manager due diligence, including annual on-site visits to managers’ offices. Frequent contact with recommended managers keeps us informed of material changes in personnel, ownership structure, asset growth, and shifts in portfolio style or objectives.

Prepare Research Reports

The Investment Committee compiles research on all managers utilized by WaterStreet’s clients. Reports include detailed evaluations of each manager’s business including personnel, investment process and implementation, research capabilities, risk management, and back-office operations. Thorough quantitative analysis of investment returns is also included.

Obtain Investment Committee Opinion

Our Investment Committee rates managers based on quantitative and qualitative factors. This proprietary rating system evaluates the strength of each manager over time and in relation to their peer group.