FREQUENTLY ASKED QUESTIONS
Answers to Common Questions
How long has Anchor Capital managed alternative investments?
The firm has managed client accounts with proprietary alternative investment strategies since its inception in 1996. Anchor’s portfolio management team has over forty years of combined experience managing and developing proprietary alternative investment strategies.
How do you make your investment decisions?
We utilize a rules based or quantitative investment decision-making process that is based upon years of market research. We make our investment decision based on our highly probable and research based models. Anchor performs numerous trading simulations to evaluate a strategy’s historical risk/reward characteristics before utilizing it for the funds that we manage.
Why is a rules based/quantitative investment process important?
We believe in being unemotional with our investment decisions. Investors’ emotions and emotional buy and sell decisions are the heart of under performance. We eliminate “gut” forecasting and focus on our proven investment models. These models guide us our investment decisions and provide a disciplined framework. We don’t rely on a guess or a forecast to risk capital.
What is your competitive edge over other managers?
We believe there are several key factors that give us a competitive advantage over other managers. Anchor Capital utilizes a systematic, quantified investment approach which we believe greatly reduces the chance of irrational decision-making and dependence upon long range forecasting. Our quantitative process also helps expedite our evaluation of securities which allows us to be more dynamic with our investment decisions in our portfolios. Finally, our portfolio managers have diverse investment backgrounds which we believe helps us to avoid traditional analysis methods. This different way of thinking and investing is what truly gives Anchor its investment edge.
Why does it matter that Anchor Capital is independent?
Independent ownership allows us to maintain our independent research and investment decision making. Anchor Capital is also entirely employee-owned. This structure allows the firm to work to achieve its client’s objectives without being subjected to potential competing interests of an affiliated company. As an SEC registered firm, we maintain the highest level of integrity and compliance, while avoiding any conflicts of interest that can adversely affect investors.
Are Anchor Capital’s management fees high in comparison to other managers?
We believe that Anchor Capital’s fees are competitive relative to the investment expenses and are not inconsistent with the fees of other long-short managers that offer long-short and alternative strategies.
Are there potential weaknesses of Anchor’s investment style?
Our positions are usually not held for long periods of time, therefore, the most significant weakness of the strategies managed by Anchor Capital is that they are generally tax inefficient. As a result, they may be better suited for accounts with a tax-deferred status. Of course there are many other factors to consider, and each investor should carefully consider each investment option before acting.