 |
CRATUS CAPITAL, LLC 4358 Edinbridge Circle Sarasota, Florida 34235 Phone / Fax: 941-556-9043 Email: djohnedis@cratuscapital.com |
|
||
 The first step in the Investment Consulting Process is the completion of the Comprehensive Investment Review. For all new clients, Cratus Capital does a very thorough analysis and review of the client’s current Investment Plan or Program. This includes a review of the Investment Policy Statement along with any necessary recommendations for improvements. We also do a complete review of the Plan Design, Asset Allocation, Investment Manager or Fund line up and custodian and other service providers. We provide the client with the initial report of our Comprehensive Investment Review with recommendations.The Investment Consultant service is an ongoing and very necessary role for clients and plan sponsors. At Cratus Capital we provide full investment consultant capabilities including an ongoing monitoring and review of all investment managers and funds in the Plan. When analyzing an investment manager or fund, Cratus uses a disciplined investment process. This process includes a full understanding of the individual investment strategy. A detailed style analysis is done on each manager and fund. This analysis includes looking back in time to see how the manager has followed or shifted its investment approach. Is the manager currently using the investment approach that was identified when the manager or fund was hired? In many cases investment managers shift their style when a new investment team or portfolio manager takes over or when the market environment makes their approach or style less favorable. At Cratus Capital we are concerned with investment managers who shift their investment style without any formal notification to clients or shareholders. The cause of this concern is that the client may already be well positioned in the investment style where the manager has moved. This could cause an overweighting in a particular part of the market, exposing the Plan to greater risks and potentially violating diversification requirements.  It is important to know the investment organization which manages the fund or investment strategy. While performance may be good in a particular fund, if the organization is not stable or is in jeopardy of being bought out, the fund or manager could be replaced with a new investment team. It is important to understand the ownership structure of the organization. It is also good to know all of the investment strategies managed by the organization. Is this a boutique investment firm focused on one investment style, or is it a large firm providing a full family of funds or investment strategies?"Comparative analysis is performed by the research team at Cratus Capital by viewing the given investment strategy against relevant benchmarks and conducting a peer group analysis." Comparative analysis is performed by the research team at Cratus Capital by viewing the given investment strategy against relevant benchmarks and conducting a peer group analysis. This not only includes a performance review, but also a look at how this strategy performs during different market environments. This analysis looks at all of the relevant risks compared to the peer group as well as the stability and expertise of the lead portfolio manager and the investment team. Cratus uses multiple sources and databases when analyzing and evaluating an investment fund or strategy. These include but are not limited to Morningstar, Mobius, PSN, S&P Manager Database, databases from other consulting firms and service providers, investment organization websites and research reports from independent rating agencies. Once the data gathering and initial research is completed, Cratus will determine the suitability and appropriateness of the fund or investment strategy for the given client.  The next step in the investment process is to schedule a conference call with the key investment decision makers of the investment strategy or fund. This is done with the lead portfolio manager and key investment research people on the strategy. Cratus does a deeper level of research than most consultants by digging into the strategy and asking the managers to provide detailed explanations of their investment strategy, investment decision making process and the logic behind the buy/sell discipline and explanations for buying, holding or selling specific securities. We evaluate the individual holdings in the portfolio and get a better understanding of the position and sector weights as well as the manager’s strategy and outlook for the given asset class.There is a list of questions and information which must be gathered, analyzed and reviewed by Cratus Capital and which must meet the criteria of a disciplined investment manager to be considered for investment. All of the investment recommendations are customized for the specific needs, goals and risk parameters of the clients. Unlike many consulting firms, Cratus has an approach which is customized for each client. The selection process is unique in determining how a new fund or investment fits into the overall portfolio of each client. Cratus conducts onsite visits with all investment managers and funds before they can be approved for recommendation to clients. During an onsite visit, the Cratus investment team will meet with all of the key investment decision makers and key principals of the investment organization and the investment strategy. In addition to meeting the portfolio managers and research team, we meet with the traders and all back office, operations and compliance personnel. The operations review is an essential part of the onsite visit. Upon completion of the onsite visit, a detailed investment report with an analysis, evaluation and recommendation will be done by Cratus Capital. These reports are stored in the Cratus Capital manager database. Cratus has a comprehensive investment manager and fund database with reports and evaluations and recommendations on hundreds of investment funds and strategies. Cratus also meets with each investment manager at least on an annual basis to keep informed of changes in personnel, investment style, organizational issues and other relevant items which may affect the investment strategy or fund being reviewed. We receive all of the quarterly or monthly performance results for all of the investment strategies and funds we follow. We also receive all updates, press releases and new information on both the organizations and the individual investment strategies. We hold quarterly conference calls with our managers to remain updated on their progress, and we have a direct line of contact with the senior members of the investment team so we can call when there are questions. We do not invest with managers who are not accessible to us. On a bigger scale, Cratus also evaluates and makes changes to the Investment Policy Statement as necessary. We will recommend changes to asset allocation, additions of asset categories and investment strategies as is appropriate. This evaluation process and analysis is ongoing and changes can be made for a variety of reasons. Some of these include policy changes in the organization, major market or sector moves, new investment vehicles or ideas, concerns or problems with managers or asset categories and rebalancing due to market movements. In addition, Cratus Capital provides client education and board training. Daniel Johnedis has over 23 years of experience with board training and presentations as well as client education. He has taught investment courses at several universities and has given lectures and seminars to various organizations and associations. At Cratus we believe in open and frequent communication with our clients. We want our clients to understand the investments in their portfolios. We educate our clients on both general investment management topics as well as specific fund and investment strategies. We are always available to answer questions or concerns of our clients. |
||
| Home - Individuals - Institutions - About Us - Contact Us - Sitemap | |
| Copyright © 2010 Cratus Capital All Rights Reserved | |