Managers of traditional investment funds use HOLT’s customized analytical tools to streamline their decision-making process, filter investment ideas, and quickly diagnose and correct problems in their portfolios.
Simplifying investment-picking for a major investor
A large investor in public and private equity needed a faster, more effective way to look at a broad universe of companies and choose investment targets.
We took a holistic approach for the client, providing data, tools and consulting services. Initially, we provided a screen of companies with financial characteristics that matched the client's investment criteria. Secondly, we used a variety of HOLT tools to evaluate the upside potential and downside risk under multiple scenarios. Finally, we conducted more comprehensive reviews of certain companies identified by the client.
The client has asked for regular updates to this process and now considers it a core element of the idea filtering process.
Helping an investment fund blend objective and subjective analysis to refocus its portfolio
The international team at a large U.S. mutual fund approached HOLT for assistance with a major review of their holdings. The fund had delivered very strong performance historically (top quartile for the last three, five, and ten years), but was in the bottom 10% of its peer group year-to-date. The client asked us to evaluate the portfolio through the lens of HOLT’s methodology and recommend modifications.
We employed three different analytical approaches to review the portfolio: HOLT Portfolio Consultant review, HOLT Sector Specialist review, and an objective, quantitative scorecard ranking of the portfolio. We found that the fund's "Blue Chip" strategy was too restrictive, contributing to sharp underperformance during periods of outperformance by lower-quality stocks.
The client incorporated the scorecard ranking into their monthly portfolio review, and the fund has since modified its investment objectives.
If you’re an equity manager or analyst and you’d like to learn more, please contact us.