investment STRATEGIES

Alternatives

 

 
 


Alternative Income

Alternative Income Strategies

Alternative Income Strategies

Objectives

  • Provide total return comprised primarily of current income, with a secondary emphasis on capital appreciation in both periods of strong market returns and periods of market stress.

  • We focus on funds investing in cash generating real estate, real assets, and private credit that exhibit high yield potential and lower volatility.

  • In most instances, investments should allow for at least quarterly liquidity.

Process

  • The Alternative Asset Team starts with sourcing from industry networks, fund managers, third party marketers, and capital introduction groups to identify top performing managers.

  • Strategies are vetted to ensure a high probability that the investment will achieve the aforementioned objectives.

  • All alternative investments are examined using the same due diligence process performed by the Alternative Investment Team and approved by the Investment Policy Committee.

Characteristics

  • Composition: Global private real estate, private real assets, private credit, and specialty finance

  • Positions: 3 to 6 Fund Positions

  • Benchmark: Consumer Price Index (CPI) plus 3%

Updated annually. Data as of January 1, 2023.

 


Private Real Estate

 
Real Estate Strategy

Real Estate Strategy

Objectives

  • Provide a noncorrelated source of return while generating tax-efficient income distributions

  • Enhance portfolio diversification

  • In certain instances, address specific client needs (e.g., 1031 exchange solutions)

Process

  • The alternatives team starts with sourcing from industry networks, fund

    managers, third party marketers and capital introduction groups to identify

    top-performing managers

  • Strategies are vetted to ensure a high probability the investment will

    achieve the aforementioned objectives

  • All alternative investments are examined using the same due-diligence

    process performed by the alternatives team and approved by the

    investment policy committee

Characteristics

  • Composition: Both private real estate equity and debt, primarily core and

    core-plus assets in multifamily, industrial and office sectors

  • Positions: 1-to-3

  • Benchmark: Varies, dependent on underlying fund assets

 

Updated annually. Data as of January 1, 2023.

 


Private Equity

 
Private Equity Strategy

Private Equity Strategy

Objectives

  • Allow access to private equity that is diversified across sector, region, deal type and vintage year

  • Deliver a differentiated and diversified source of alpha

  • In most instances, investments should allow for quarterly liquidity at a minimum

Process

  • The alternatives team starts with sourcing from industry networks, fund managers, third party marketers and capital introduction groups to identify top performing managers

  • Strategies are vetted to ensure a high probability the investment will achieve the aforementioned objectives

  • All alternative investments are examined using the same due-diligence process performed by the alternatives team and approved by the investment policy committee

Characteristics

  • Composition: Primary categories are buy-out, growth equity, credit, secondaries and special situations/opportunistic

  • Positions: Varies

  • Benchmark: S&P 500 Index

    Updated annually. Data as of January 1, 2023.

 


Targeted Strategies

 

Objectives

  • Investment strategies are sought that will fulfill one or more specific client objectives.

    Among the objectives are:

    • Income

    • Growth

    • Stability/low volatility

    • Downside protection

    • Diversification

    • Tax efficiency

    • Specific sector or asset class exposure (e.g., commodities)

    • Specific client objective (e.g., impact investing)

Process

  • The alternatives team starts with sourcing from industry networks, fund managers, third party marketers and capital introduction groups to identify top-performing managers

  • Strategies are vetted to ensure a high probability the investment will achieve the aforementioned objectives

  • All alternative investments are examined using the same due-diligence process performed by the alternatives team and approved by the investment policy committee

Characteristics

  • Composition: Varies

  • Positions: Varies

  • Benchmark: Varies

Updated annually. Data as of January 1, 2023.

Team
Joe Herrle, CFA, lead
Ralph Cole, CFA
Dean Dordevic
Brad Houle, CFA
Ezra Kover, IACCP®

Investment Manager and Fund Submissions

If you are an investment management firm, fund manager or service company interested in partnering with Ferguson Wellman, contact us at duediligence@fergwell.com. Please note that we receive a considerable volume of requests that are reviewed periodically. We will contact you if our research team is interested in having further discussions. It’s not productive to contact individual members of our research team.