The Process
Learn How We Manage Your Portfolio
Clearwater Advisor’s fundamental tenets for the management of all discretionary portfolios:
- Portfolio value is best captured through prudent sector allocation and security selection. Credit-intensive portfolios (i.e., an overweight to the credit sectors and individual credits) add the most relative value over benchmark returns in the long run.
- Overall duration’s contribution to a portfolio’s excess return over a benchmark will be minimal in the long-run.
- A portfolio largely constructed of marketable and transparent securities allows for better risk controls in times of market volatility.
- Portfolios should be compliant with guidelines and policies to satisfy return and risk objectives with respect to their aggregate investment portfolio.
Economic Outlook
Our process begins by developing an understanding of where the world is going. Top-down analysis of macroeconomic and general market conditions are performed by the firm’s Investment Committee.
Credit Research
Our edge lies within our prudent credit selection. Our in-house credit research process is structured to embrace our investment philosophy of preservation of capital, liquidity, and then return.
Sector Relative Value
We use a top-down, relative value approach focused on identifying market opportunities within sectors, industries and credits that reflect our firm-wide view.
Yield Curve Analysis
The Investment Committee evaluates the yield curve and roll characteristics versus potential shifts and shocks to identify best portfolio positioning for clients.
Security Selection
We perform individual security analysis to identify bonds which display superior risk/reward characteristics to their generic cohort.
Trade Execution
Portfolio Managers utilize a combination of firm trading platforms in seeking to achieve best execution while maintaining compliance with client guidelines.