Investment Philosophy

SMMI’s investment philosophy is based on the belief that if you pick a team of thought leaders to select the finest managers, combine them in ways that optimise their talents, and adopt an active approach to risk management and asset allocation, then significant alpha generation will follow.

Generating alpha
What is alpha? Broadly speaking it is outperformance relative to an investment benchmark, a group of peers, or both. Alpha generation in portfolios is one of the primary objectives of any active asset manager. As a multi-manager, one of our challenges is to understand how different managers generate alpha in portfolios.

Another is to ascertain how best to combine various managers so as to maximise the benefits of their complementary nature.

SMMI's active multi-manager approach generates alpha jointly and separately through:

1.  Active asset allocation and risk management
2.  Manager Selection
3.  Portfolio Construction