Multi-Discipline Strategies

Each of our multi-discipline strategies is built with the same fundamental framework and core principles, with broad asset class exposure and tactical strategies applied to all portfolios.  We utilize a core/satellite approach to developing our multi-discipline strategies to improve portfolio efficiency.

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Portfolio Management Framework
The process we use to develop and manage our multi-discipline strategies is designed to create consistency across our portfolios regardless of the underlying investment vehicles used. This allows for adherence to our investment philosophy and process and provides the added benefit of being simple and effective to communicate to your prospects and clients.

Determine Asset Classes

Satellites and Alternatives

Core Portfolio and Satellites

Diversification is paramount to the efficiency of a portfolio. In a world of higher correlations, we believe that incorporating non-traditional asset classes (satellites) into a core portfolio will improve a portfolio’s risk/return profile. By diversifying a portion of a portfolio’s assets into satellites, absolute volatility is not only reduced, but the frequency of lower volatility is also improved. As we know, risk management is key to the long-term success of any investment strategy.

Establish the Baseline

Once the core/satellite asset classes are determined, we analyze historical returns, volatility, and correlations to develop an optimal allocation based on each portfolio’s risk budget. Forward looking capital markets assumptions are then considered to determine whether the historical relationship is valid. When this is confirmed, a neutral or target weighting for each asset class is established.

Add Tactical Considerations

We create the baseline allocation with the flexibility to respond to changing market conditions and opportunities. We don’t; however, want our tactical management to materially compromise the risk profile of your clients’ portfolios. For this reason, we set a maximum and minimum allowable weighting to each asset class and category. Our tactical management within these defined ranges is based on identifying actionable themes using fundamental factors such as:

  • Macro-economic conditions
  • Secular trends
  • Business cycle analysis
  • Relative valuations across regions, asset classes, sectors and industries

Select Investments

Due Diligence Four Part Process

Due Diligence Process

Cost is the first hurdle a manager faces in outperforming the market. As part of our investment selection process, we continually look for innovative ways to access quality managers at a low cost. For example:

  • We leverage our resources to gain access to the lowest cost share class of mutual funds available, typically institutional class
  • We utilize Alpha Manager models instead of SMA portfolios to access the same management at a lower cost
  • Low cost ETFs are often used to execute our tactical management decisions

Investment options to be included in our various portfolios must also satisfy the other requirements of our stringent due diligence process. Various quantitative and qualitative criteria are analyzed with the ultimate objective being to identify managers that not only exhibit a successful track record of performance and risk management, but who
are likely to repeat that success.

ATManaged Allocation Portfolios
Built upon our core/satellite approach, the ATManaged Allocation Portfolios are five style based portfolios of equal levels of risk from aggressive to conservative. These portfolios are broadly diversified within each asset category utilizing up to 19 low cost mutual funds. We tactically manage the asset allocation to participate in perceived market opportunities as well as to manage risk. The portfolios are also rebalanced quarterly to the desired target allocation.

These portfolios are perfect for clients with less sophisticated investment needs and provide many benefits including:

  • Strategic portfolio development with tactical management
  • Broad, style based diversification
  • Portfolios allow for easy portfolio selection and communication to clients
  • A focus on risk management and cost

ATManaged Overlay Portfolios
Client Portfolio - Unified Managed Account

ATManaged Overlay

ATManaged Overlay is our unified managed account product. It utilizes the same core/satellite approach as our other multi-discipline portfolios, but is implemented with a combination of Alpha Managers, ATManaged Securities Portfolios, ETFs, and mutual funds. Tactical management decisions are executed in a “completion sleeve”, which streamlines the implementation process and minimizes trading costs. Because ATCapital Management acts as overlay manager, we are able to efficiently coordinate the overall strategy of your clients’ accounts from the trading of multiple managers, to overlaying security level constraints and tax considerations, to other client level restrictions.

The flexibility and transparency of these portfolios makes them ideal for high net worth clients with more sophisticated investment needs. The benefits provided are many:

  • Strategic portfolio development with tactical management
  • Multiple investment vehicle implementation
  • Ability to customize portfolio within the framework of a
    multi-discipline strategy
  • One unified account eliminates the need for multiple accounts and
    consolidated reporting
  • Greater transparency and efficiency
  • Account and sleeve level performance reporting