What is the concept behind JMCAM’s approach?
JMCAM’s philosophy emphasizes a novel approach in researching money managers for the construction of a diversified portfolio. We would describe our approach as “concentrated multi-management”. Our innovative design uses a unique bottom-up manager selection process, focusing on stock-pickers that demonstrate consistent added value in specific sectors, coupled with thorough and disciplined risk management to monitor and control our underlying exposures. LEARN MORE
What are the competitive advantages of such an approach?
We believe that our process’s main competitive advantage and value add comes from:
(i) the way we analyze managers, focusing on convictions and areas of expertise, and
(ii) the way we combine differentiated managers and specific portions of their traditional strategies within a fund construct.
Our unique and innovative design allows us to preserve the benefits of multi-management (i.e., spreading contributions and limiting key-man risks) without over-diversifying the aggregate portfolio or diluting the convictions of our underlying managers.
We provide access to boutique institutional managers, and more importantly to specific portions of their traditional strategies that are not otherwise accessible in the marketplace.
We rely on the expertise of well-regarded, institutional investment managers who have, on average, about 20 years of experience managing long-only US equity portfolios. The firms we have partnered with have all been in existence for more than 25 years and, combined, manage over $250 billion of assets under management.
What is unique about the team of portfolio managers you have assembled?
Beyond the fact that all of our managers have proven pedigrees, excellent long term track records and are of institutional quality, all of our managers display a demonstrable expertise in their ability to pick stocks within a specific sector of the market. They have shown a propensity to add value within a specific sector on a consistent basis and over a long time period.
Are there any specific characteristics you look for in a manager?
While we enter any analysis with an open mind and let the evidence drive our conclusions, there are certain characteristics we prefer when researching managers:
High employee ownership or alignment of interest;
All cap managers who have the flexibility to go up and down the market spectrum and increase their opportunity set;
Valuation sensitivity and managers that aren’t chasing momentum;
Conservative, risk aware managers;
Benchmark-agnostic, high conviction managers;
Managers that have investment approaches and processes that are easy to understand, repeatable and robust, focusing on high quality businesses.
What are your target clients? Who is this appropriate for?
We believe that our approach is appropriate for clients who:
- Understand and can cope with equity-market risk;
- Believe in active management and are looking for an active exposure to the US equity market;
- And are looking for a unique and innovative solution to outperform the market.
Our target clients are families, high-net-worth individuals and institutional clients such as public pension funds, endowments and foundations, Taft-Hartley plans etc…