Our Investment Philosophy
You do not have to be limited to the passivity of basic index strategies or the hubris of active management.
At Spectra, we seek to build a series of small edges that create an advantage for investors over time. We work aggressively against the costly errors that human nature, market forces, and marketing throw in every investor’s path.
We Believe in Fairness
It is our view that any investment risk you take be compensated with objectively higher long-term returns.
We Believe in Unpopular Decisions
In our experience markets are, on average, efficient. But when market prices become extreme, we believe in taking judicious action.
We Believe in the Scientific Method
We monitor financial research and allow our understanding of markets to evolve.
If you want to have better performance than the crowd, you must do things differently from the crowd.
-Sir John Templeton
The Investment Selection Process
The Root of the Spectra Process is Skepticism
We have found that many well-publicized investment strategies deliver few benefits on portfolios of highly-liquid, low-cost securities. In exchange, these strategies often command high fees and capital lock-ups.
Our selection process is based on an understanding that not all research is created equal and that all financial models are, on their own, incomplete. A skilled manager anticipates and understands this shortcoming.
A Focus on Engineering Value for Clients
In building client portfolios or assessing outside opportunities, we always ask ourselves whether there is a simpler, more cost-effective, or less risky way of achieving the same objectives: oftentimes, there is.
To find true sources of excess return, we test the widest range of historical market data we can find using our own analyses. Investment strategies that can provide an advantage against standard market portfolios are put through further testing.
We deliver rigorously vetted portfolios that minimize costs and provide prudent, incremental exposure to credible sources of excess returns.
A Curated Pool of Alternative Investment Opportunities
Sometimes, an investment opportunity is truly unique, whether for its performance or for its independence from the broader market. In these situations, we might recommend allocation to the strategy following an extensive vetting process.
We are extraordinarily selective and turn away most alternative asset managers: for any number of pitch books that Spectra might receive each year, typically only one or two strategies will pass our analytical tests and merit further consideration for our clients.
Hand-Picked Solutions and an Industry-Leading Technology
We are a hands-on investment management office. None of our diligence is outsourced, and any investment strategy without sufficient data to analyze is declined. Our processes, tools, and record have been built by leveraging our decades of experience in high-net worth investment management.
We utilize best-in-class portfolio management technology to provide full visibility and insight into assets across managers, regions, and custodians.
Some of our clients want deeper access to our process, and working with Spectra means having an open invitation to our methods and ideas.
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