Top-Down Process

Portfolio Construction Starts With a Macro Perspective

Our top-down investment process begins with macroeconomic theme development, which helps inform our country, sector/industry and thematic preferences—the main drivers of portfolio returns, in our view. From there, we conduct individual security analysis to select securities that best capture our higher-level preferences, which we believe are likely to outperform peers.

We further believe our process is uniquely suited for managing portfolios and sets us apart from other investment managers—many of whom use “bottom-up” approaches that see key sector or country decisions as byproducts of stock picking. By actively managing these crucial higher-level decisions, we feel our top-down process allows us to exploit a greater opportunity set for generating outperformance than other approaches.