Our investment philosophy is comprised of four components which we seek to deliver to wealthy families and smaller endowments and foundations that do not have sufficient scale to build their own internal investment office:
Independent, conflict-free investment strategy development:
We believe that the most sophisticated and successful investors make a clear distinction between investment strategy development and asset management. Investment strategy development entails asset allocation and selection of asset managers across all asset classes. Asset management involves security or specific investment position selection and is generally highly specialized around a sector within a specific asset class. The investment world has evolved into a complex array of asset classes where specialization is critical for the asset manager to excel. We believe strongly that an independent investment advisory team, as distinct from asset managers, should determine asset allocation and recommend the best asset managers in a given asset class for any given portfolio. It is highly unlikely that any one asset manager will be best of breed across numerous asset classes. This fact dictates our belief that any given investment portfolio should have its strategy (asset allocation and asset manager selection) determined by an independent internal or external investment advisory team with no incentive to appoint itself as asset manager in any one area. We believe that any institution which purports to provide both roles is conflicted. Partners Capital plays the role of an independent external adviser with no asset management roles and therefore is free from conflicts in allocating assets and selecting asset managers.