Investment Process Audit
An Investment Process Audit could otherwise be characterized as what they never
taught you in business school about the business of investment management
There is a trade-off between alpha and risk management: Studies of long-term returns indicate that the equity investment styles that outperform the most are those that have the best chance of getting a manager fired.
The CIO and CEO in an investment organization have differing objectives: The CIO’s responsibility is to build an investment process that can generate superior returns over time. The CEO’s responsibility is to ensure that the CIO doesn’t take excess business risk. Even the best investment strategies can fail in the short run, and the organization has to take steps to control business risk so that it can survive periods of performance shortfalls.
How we can assist
We can show you ways to control your business risk and enhance returns, all without changing a manager’s intellectual capital, or alpha generation “secret sauce”. We explain how to:
- Set an investment benchmark that reflects your business risk: Analyze the real-time positions of competitors’ portfolios.
- Distill and control your bets: Maximize your intended bets, minimize or eliminate your unintended bets.
- Optimize your trading to fit your investment style: Your trading desk is part of the investment process – get it involved!
- Monitor portfolio implementation and conduct shortfall analysis
- Better process integration: Examine every stage of your investment process to ensure each steps and works together as a team.
I offer experience across broad spectrum of industries with a diverse skill set which can be tailored to your businesses needs.
Cam Hui, CFA
Cam is a seasoned investment professional with a specialization in investment strategy and technical analysis backed by over 30 years of experience. He spent 10 years with the Batterymarch organization, first with Batterymarch Canada, and later in Boston with Batterymarch Financial Management as a quantitative equity PM with responsibilities in US, Canadian, EAFE, and EM equities. Notable public plan client accounts he managed include OTTPB (Ontario Teachers), and CALSTRS (California Teachers pension plan, with US$224b in assets as of June 30, 2018). His position on the II-ranked BAML US Technical Analysis team led him to develop short-term trading models and techniques to reverse engineer hedge fund exposures. Cam’s extensive experience working through periods of growth and recession has enabled him to develop insights on constructing portfolios that are never taught in business school.