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Chris Campbell, Partner WhiteStone
G l o b a l P a r t n e r s
Investment Alpha & Social Alpha simultaneously
generating
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Representshigh‐performinginvestmentstrategiesfromsociallycompellingfirms.
Promotesskill‐basedengagementsandequalopportuni>esforemerging(bou>que),minority‐owned,woman‐owned,
andsociallyresponsibleinvestmentmanagers.
RecognizesthatOpportunity≠Skill(i.e.virtuemaybeitsownreward,yetreturnspaythebills)
WhiteStone
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InvestmentAlpha(α):extraordinaryinvestmentreturns(where“ordinary”returnsarethosethemarketalreadyprovides)
SocialAlpha(α):extraordinarysocialreturns(where“ordinary”isapassive,non‐resistancetosocialprogress)
MakingYourInvestmentsStronger,YourWorldBeOer
InvestmentAlpha+SocialAlpha
DefiningAlpha(α)
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WhiteStone’sMandate:Iden:fyandrepresentsociallycompellingfirmswithina
“highalphauniverse”
HighAlpha
Emerging
Woman‐Owned
Minority‐Owned
SociallyResponsible
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Skilledsmallerbusinesses,minority/women‐ownedmangerstoooYengounseen,unheard,andun‐hired.
InvestmentperformanceisaNon‐Nego7able
MarketwithaSkill‐FirstFocus(i.e.wedon’tlookfor“sympathyvotes”)
Challenge:theG‐A‐PbetweenSkill…Opportunity
TheLandscapeForHiringEmerging&SociallyCompellingManagers
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BigorBou>queManagers?Wherearetheassets?
62%of$
30%of$8%of$
2%MegaManagers
16%Other
82%Bou>queManagers
Evolu:onRevolu:on2008:AProfileoftheInvestmentAdvisorProfession,IAA&NRS,2008
MegaManagers($50Borgreater)• Makeup2%ofPopula>on(82firms)• Controlnearly2/3oftotalassets
Bou7queManagers($2Borless)• 8ofevery10managers• Manage8%oftotalassets
ManagerPopula>on
AUM$
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BigorBou>queManagers?Where’stheSkill?
U.S.EquityManagers*AnnualizedPerformance(2000‐2005)
Performance EmergingMgrs MegaMgrs
Percen:le <$2billionAUM >$80billionAUM
5th 15.37% 11.38%
25th 8.51% 6.99%
50th 3.69% 1.54%
75th ‐0.36% ‐2.88%
95th ‐6.5% ‐8.30%
*NTGAResearchStudy:”CanElephantsDance?”,2005.
“Investorswhoinsistononlyhiringlargefirmsprobablyarenotprotec:ngthemselves,andpossiblymissingoutonmostofthebesttalentinthemarketplace.”
‐NorthernTrustGlobalAdvisors*
TheBigQ:Whynothireskill?
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Asinvestors,mostofus(ins>tu>onal,individual)investtoeithergroworprotectourmoney.
Skilliswhatgetsthejobdone.
Whiletherearemanyimportantconsidera>onsinhiringaninvestmentmanager,SKILLshouldbeatthetopofthelist.
Summary
Let’skeepitsimple…
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Take some action. Contact WhiteStone. Chris Campbell, Partner
937 609 8213 [email protected]
1)Realizeinvestmentskilldoesn’thaveasize/gender/agebias.Someofthemostskilledtalentis“flyingundertheradar”.
2)Confirmskill.Doesthisbou>que/minority/woman–ownedinvestmentmanagergenerateinvestmentalpha?
3)Givethisskillanopportunity,reapthereward,andsendamessage.Engagingahigh‐performinginvestmentstrategyfromasociallycompellingfirmsimultaneouslygeneratesinvestmentalphaandsocialalpha.
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