LONDON, Aug. 2, 2017 /PRNewswire/ -- Partners Capital has announced the launch of a new strategy called "The Efficient Alpha Portfolio or TEAP". Partners Capital is the USD$20 billion global outsourced investment office serving endowments, foundations and ultra-high net worth families. The TEAP strategy is a carve-out of the firm's core investment model and aims to deliver a low cost diversified multi-asset class solution for large institutions seeking a superior alternative to passive investing.
Stan Miranda, CEO and Founder of Partners Capital commented:
"Partners Capital's investment philosophy is rooted in a long-term, multi-asset class approach to investing as practiced by some of the leading endowments and foundations. We seek to earn excess returns by our risk-based portfolio construction approach that focuses on harvesting risk premia (beta) across markets as cheaply as possible and paying manager fees only where potential outperformance (alpha) truly justifies it. That has us paying relatively high fees to a select group of alternative asset managers who we believe, despite the fee load, can generate significant outperformance. However, TEAP will be a carve out of this core investment model and focus exclusively on a portfolio of low-cost managers that aim to deliver outperformance by either systematizing alpha strategies (allowing them to charge lower fees) or providing their strategies at "fair fees" that are aligned with client interests.
Arjun Raghavan, a Partner and head of Portfolio Construction at Partners Capital, added:
The TEAP Strategy will incorporate all aspects of the classic Partners Capital investment model, including its proprietary risk-based portfolio construction philosophy and tactical asset allocation approach. The overall look-through manager fees for TEAP will be below 1%. Therefore, you can think of this portfolio as sitting between a passive portfolio and the full fee Endowment Model. We would regard the TEAP strategy as more attractive than a passive portfolio which by definition will underperform net of the cost of the tracker fees and trading costs."
About Partners Capital
Founded in 2001, Partners Capital is a wholly independent Outsourced Investment Office (OCIO) primarily serving sophisticated institutions and senior investment professionals in Europe, North America and Asia. With offices in Boston, New York, London, Singapore and Hong Kong, the firm is one of the few truly global OCIOs, employing 130 people worldwide and covering all major asset classes. The firm oversees assets of more than $20 billion. Its institutional clients include 11 Oxford and Cambridge Colleges, Eton College, The Metropolitan Opera in New York, the Research Foundation for the State of New York's University System, the Royal Academy of Arts, Milton Academy, The Hong Kong Cancer Fund, the Law School of New York University and the Cancer Research Institute. Additional information on Partners Capital may be found at www.partners-cap.com.
SOURCE Partners Capital Investment Group, LLP