who 2

 

 

At Anchor Capital, we have a single focus: to deliver superior
risk adjusted returns through tactical investment strategies.

 

Anchor Capital is a SEC-registered investment advisor located in Aliso Viejo, California with over $700M in assets under management . We specialize in liquid, alternative investment strategies that seek lower correlation and less overall risk when compared to traditional benchmarks. Our investment team has a combined 40 years of experience in the research and execution of quantitative trading disciplines, risk management, and alternative investment strategies.

Our Investment Philosophy

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A Culture of Quantitative Research

While many investment strategies rely heavily upon forecasts and future estimates, Anchor gains an edge through a more quantitative approach. Anchor Capital’s portfolio management team has devoted a combined forty years to the research and development of long-short and absolute return investment strategies. We know that ongoing research and development is critical to our continued success. As financial markets continue to evolve, a large percentage of our human capital and financial capital are committed each year to monitoring and stress testing our existing investment models. We are always striving to build new strategies that will exploit our ever changing financial landscape and that produce attractive results.

Think Outside the Boxes

Style boxes tend to drive many asset allocation decisions. Thinking beyond traditional style box constraints, Anchor Capital strategies seek to achieve lower correlation to traditional asset allocation portfolio. Pursuing low correlation returns is a key ingredient in a successful diversification strategy.

Disciplined Risk Management

Investment gains are not the most important factor when we design our investment strategies. We design strategies that are built on the foundation of getting compensated for the investment risks we take. By not taking any single name risk in our portfolios, we can more efficiently simulate historical risk and return statistics for our investment strategies. Once the strategies are constructed they must perform up to the stringent risk parameters under all market conditions. This is the basis for producing absolute return portfolios at Anchor Capital. We then constantly monitor the risk parameters to ensure our strategies are meeting their investment objectives.

The Anchor approach combines versatility and structure while protecting investment returns.

 

1

VOLATILITY MATTERS

Mutual funds that pursue total returns from income and capital appreciation with a secondary objective of limiting risk during unfavorable market conditions.

 

2

LOW CORRELATION

A quantitative top down research process that measures trends in U.S. equity market indexes. Investment exposure is dynamically managed through a portfolio of long and short ETFs, mutual funds, and index-based securities1.

 

3

DAILY LIQUIDITY

• Investors looking to diversify a traditional long only equity portfolio.
• Investors who want access to long/short equity strategies with daily liquidity.
• Investors seeking the potential to hedge against equity market downturns.

 

4

QUANTITATIVE DISCIPLINE

A quantitative top down research process that measures trends in U.S. equity market indexes. Investment exposure is dynamically managed through a portfolio of long and short ETFs, mutual funds, and index-based securities.

Who We Serve

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A Stable and Clear Outlook.

Tactically management investment strategies tailored to the unique needs of institutions, private families, and the investment advisors who serve them.

Modern Risk Management strategies to help advisors more efficiently
manage client wealth.

Clients Want More.

In today’s market it takes more than simple diversification to meet the investment needs of demanding clients. Anchor Capital works with forward thinking investment advisors to not only improve risk adjusted investment results but to improve client relationships.

Anchor Capital helps professional investment advisors access to proven, liquid long-short strategies that can help smooth portfolio volatility and enhance returns. Our alternative investment strategies can serve as stand alone portfolios or as  asset class diversification in a broadly diversified portfolio.

Advisors Can Help.

– Access to Anchor Capital Liquid Alternatives
– Separate Account Management
– Variable Annuity Sub-Advisory
– Portfolio Consulting
– Anchor Capital Manager Commentary
– Proprietary Research

Your Vision. Our Expertise.

You Deserve More.

You are unique. We work with individuals and families to understand what matters most. We oversee your wealth and provide peace of mind that goes well beyond traditional diversification.

Since our founding in 1996 Anchor Capital has been helping families pursue their goals and manage risk with a dedicated team of experts.

Here’s why.

– Custom tailored investment portfolios

– Dedicated portfolio team
– Comprehensive reporting
– Anchor Capital manager commentary
– Proprietary research

Liquid, scalable, transparent alternative strategies.

Diversification through unique alternatives.

Since 2006 Anchor Capital has specialized in liquid, transparent, unique alternative strategies for institutions, family offices and hedge fund of funds. Our Alternative Strategies are available to institutions through direct execution, separately managed accounts and model research.

Our alternative investment strategies can serve as stand alone investment offerings or as asset class diversification in a broadly diversified portfolio.

Smart portfolio construction.

– Proprietary liquid alternatives

– Separate account management
– Variable Annuity Sub-Advisory
– Anchor Capital manager commentary
– Proprietary research

We understand the complex nature of trust management.

Trustees need more.

Since 2006 Anchor Capital has specialized in liquid, transparent, unique alternative strategies for institutions, family offices and hedge fund of funds. Our Alternative Strategies are available to institutions through direct execution, separately managed accounts and model research.

Our alternative investment strategies can serve as stand alone investment offerings or as asset class diversification in a broadly diversified portfolio.

Specifically tailored.

– Custom portfolio consulting and design

– Portfolio level risk monitoring
– Detailed portfolio reporting
– Dedicated and responsive team
– Proprietary research

EXPERIENCED LEADERSHIP

With more than $800 million in assets under management, our investment team has a combined 40+ years of experience in the research and execution of quantitative trading, risk management, and alternative investment strategies.

Garrett Waters | Anchor Capital

Garrett Waters

Portfolio Manager
CEO, Anchor Capital

  • 22 Years Experience
  • CEO of Anchor Capital
  • Previously, JP Morgan Investment Management, Barclays Global
  • Villanova University, 1988-1992

 

Eric Leake | Anchor Capital

Eric Leake

Portfolio Manager
President, CIO, Anchor Capital

  • 22 Years Experience
  • President, CIO of Anchor Capital
  • Member Market Technician’s Association, American Association of Professional Technical Analysts
  • Azusa Pacific University, 1988-1992
 

Answers to Common Questions

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FAQs

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.