Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
ECP Asset Management targets institutions
(Pictured: Manny Pohl)
Following the appointment of Andrew Dale to his investment team, and the opening of a Sydney office, ECP Asset Management chairman and chief executive officer, Manny Pohl, is optimistic the fund will sign up its first institutional client by the end of the year.
“As you know, institutional mandates can take a while. You’ve got to get the gatekeepers on board,” Pohl said.
“We’ve pitched to two investment committees. We’re optimistic but you don’t have the money until you have the money.”
Prior to starting up ECP AM, Pohl founded and led Hyperion Asset Management for over 16 years. He launched the new asset management business less than 12 months ago with a small and mid cap ex 50 strategy ie investing outside the ASX50. ECP AM now has $180 million in funds under management, mostly in individually managed accounts (IMAs) and private money.
Pohl said he had been speaking to Andrew Dale for some time before the hire was announced earlier this month.
Dale joined ECP from Macquarie Bank where he was managing director, global natural resources.
Pohl prefers investment managers themselves to visit clients, rather than the traditional client-facing business development managers.
“All funds managers do their own research…All four of us are required to visit the clients and talk to the clients,” Pohl says.
That means meeting clients around once every six months.
“I believe people want to see the funds managers,” Pohl says.
The fund has a 10 per cent investment in a UK-listed listed investment company.
