Port Street Institutional Opportunity Fund’s total portfolio construction process incorporates 4 distinct phases;
Port Street management devotes considerable time to understand the risk embedded in the global economy and markets. We begin by reviewing forward looking capital market assumptions to understand investable market valuations, which helps to shape the portfolio broad allocation framework.
Management’s asset allocation strategy and implementation are driven by global economic conditions studied in Phase 1. Management evaluates asset classes and selects those believed will support and meet the Fund’s stated goals and objectives. Global equity and fixed income assumptions used in the asset allocation analyses incorporate forward looking return and correlation estimates. Our Capital Markets review process determines the asset allocation mix. Management believes that this process provides a more accurate assessment of downside risk potential and therefore an enhanced perspective for risk mitigation through asset allocation.
Management initiates potential manager reviews and strategy allocation. Our quantitative analysis acts as the foundation while the qualitative strategy implementation process fine-tunes the allocation in consideration of each manager’s specific strategy and portfolio characteristics. The Adviser manages a portion (or sleeve) of the Fund and allocates Fund assets to other professional investment managers (“Sub-Advisers”) that execute distinctly different investment strategies. The Adviser maintains overall supervisory responsibility for the general management of the Fund’s portfolio and implementation of the Fund’s investment strategy. The Adviser believes that this combination of quantitative allocation modeling and thoughtful manager implementation helps to optimize the potential risk adjusted returns for the fund.
Investment Manager/Strategy Selection
- Core tenets of manager evaluation process
- Due Diligence – Team reviews over 700 managers/strategies per year
- Quantitative Manager Analysis – 25% of Final Score
- Qualitative Manager Analysis – 75% of Final Score
- Follow Port Street Investments’ time-proven process to determine professional managers
Ongoing risk management and rebalancing ensures the portfolio’s overall integrity while maintaining consistency with the Fund’s stated goals and objectives. Using stress testing scenarios, asset class valuations and risk assessments are continuously reviewed and maintained throughout the year, confirming that proper portfolio construction and allocations are upheld.