Category: Mutual Fund Commentary

TIREX Commentary – Q4 2019

Thesis

TIREX utilizes fundamental research to find properties in high barrier markets, with higher occupancy and rent growth. By focusing on quality companies and avoiding unnecessary risks, the fund obtains a strong track record that has outperformed the benchmark and REIT ETF over time. We continue to hold TIREX because of the team’s growth focus with asset concentrations in supply constrained markets. Lastly, TIREX was the lowest cost active manager screened, at 51bps.

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HLMEX Commentary – Q4 2019

Thesis

HLMEX utilizes fundamental research to find companies with strong quality and growth metrics that can be compared across the global landscape. By focusing on investments with competitive advantages, long-term growth potential, quality management, and corporate strength, HLMEX offers diversity to our EM allocation while generating alpha over the long run. We continue to hold the fund because of the team’s conviction in high quality companies and managed risk through diversification and evaluation.

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BEXIX Commentary – Q4 2019

Thesis

BEXIX is driven through bottom-up fundamental research that provides diversification within our full EM allocation. The fund looks for growth companies across all market caps that have a sustainable competitive advantage. We like BEXIX because the team takes advantage of companies that focus on consumer business and technological advancements, helping the fund produce returns above the benchmark (MSCI Emerging Markets Index).

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LISIX Commentary – Q4 2019

Thesis

LISIX is a bottom-up, growth-based fund that completes the core satellite strategy within global equity. The fund is unique in that it focuses on individual stocks rather than markets and looks for reasonably priced companies with strong growth potential. We like LISIX because of the managers’ expertise in various market caps, geographies, and sectors which helps keep the fund diversified while providing strong upside and downside capture over time.

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HILIX Commentary – Q4 2019

Thesis

Serving as a satellite holding, HILIX is a value style fund that takes advantage names that have underperformed recently and are cheaply priced. The team generates alpha by finding companies with strong fundamentals that are overlooked during times of low consensus expectations. We like that HILIX takes advantage of extremes and gains exposure to less efficient market caps by having more holdings and moderate active bets.

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JPIN Commentary – Q4 2019

Thesis

JPIN’s focus on risk weighting enabled us to replace a market cap weighted index while still gaining exposure to international developed equity markets without deviating too far from the benchmark. Utilizing a multi-factor approach of value, quality, and momentum, JPIN has generated alpha through strong stock selection over time. Additionally, the fund helps diversify risk by weighting across 40 regional/sector buckets based on rolling risk statistics, which ultimately increases our exposure to active share and our risk-adjusted returns.

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TCPNX Commentary – Q4 2019

Thesis

TCPNX is a smaller fund that does not have as many assets under management compared to our other core mangers, enabling them to make more nimble and tactical decisions. By making small allocations to undervalued “riskier” asset classes (high-yield and non-dollar denominated debt), TCPNX diversifies our fixed income portfolio and generates superior returns to the benchmark (Barclays U.S. AGG). We like that the fund utilizes a bottom-up investment process through proprietary framework analysis, fundamental security review, and portfolio risk management.

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WATFX Commentary – Q4 2019

Thesis

WATFX is an actively managed fund that finds overlooked areas of the market that can go against consensus views and add value. Through internal macro, credit, and fundamental research WATFX identifies undervalued securities and takes on more credit exposure to generate alpha over time. Through a diversified approach to interest rate duration, yield curve, sector allocation, and security selection, the fund dampens exposure to volatility.

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MWTIX Commentary – Q4 2019

Thesis

MWTIX is an actively managed fund that provides a sector-based strategy while still maintaining fundamental research driven through issue selection. When compared to the benchmark (Barclays U.S. AGG), the holdings have similar duration and exposure, yet selection is focused around areas where other managers are not looking. Through sector rotation and active weighting, we expect MWTIX to generate alpha over time.

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