Portfolio Managers ‐ Investment Management Research
The Value of Investment Management Research (IMR)
Creating Value for Clients Through the Relentless Pursuit of Alpha
The IMR team uses a comprehensive proprietary process to evaluate manager best practices in eight key categories to understand not only investment execution efficiency, but most importantly manager skill – the foundation of alpha.
Don't Confuse Skill with Investment Style
There is often a tendency to misinterpret the variability of sub-style performance for skill. Further, while execution inefficiencies are generally easier to isolate, investment manager skill is the critical component of alpha, which is more difficult to assess and quantify.
Unique IMR Process – Three Steps to Ranking an Investment Manager
- Portfolio characteristics
- Performance patterns
- Market inefficiencies
SKILL: Ability to produce alpha
EXECUTION: Organizational and process efficiency
- Breadth of opportunities
- Tracking error
- Stock selection process inefficiencies
- Investment Staff
- Decision Making
- Idea generation
- Security Selection
- Sell Discipline
- Portfolio Construction
RANK: each manager to summarize IMR's level of conviction
To find out more about the IMR team or any Renaissance Investments, please speak to your investment advisor.