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May 15, 2014 at 10:06 AM
In Chicago Thursday morning at the 2014 Envestnet Advisor Summit, Investment Advisor and Envestnet|PMC announced the winners of the 10th annual SMA Managers of the Year.
Throughout the awards’ history, analysts from Envestnet (originally Prima Capital before its acquisition and rollup into Envestnet | PMC in 2012) and editors from Investment Advisor looked beyond each SMA strategy’s one-year returns to find those that consistently outperform their peers over time, following a clearly defined, sustainable and repeatable alpha strategy. With seven total award winners in five categories, and an overall SMA Manager of the Year, we honor strategies that are an important part of the firm’s overall corporate strategy, reflected in our assessment that the firm’s human capital can replicate that repeatable, sustainable investment strategy.
In our deliberations, we consider only those strategies that:
- report to the PrimaGuide research application
- have at least $200 million in assets
- have tenured management, i.e., of at least three years running the strategy
- rate highly according to Envestnet | PMC’s Due Diligence Process, which combines quantitative and qualitative criteria including performance, the firm, people, process, style, customer service, tax efficiency and a composite ranking.
Announced as SMA Managers of the Year in the U.S. Equity large-cap category this year is, first, Dana Investment Advisors for its Large Cap Equity portfolio. In the selection committee’s deliberations, PMC’s analysts noted that Brookfield, Wis.-based Dana’s “alpha generation has been extremely consistent over time,” helped by the fact that lead portfolio manager Duane Roberts has managed the strategy since its July 1999 inception. What sets them apart? Their sector-neutral, extremely structured process.
The second winner in the U.S. equity large cap category is Robeco Investment Management for its Boston Partners Large Cap Value portfolio.
In assessing Los Angeles-based Robeco for its Large Cap Value strategy, PMC’s analysts highlighted the minimal turnover on this firm’s research team of 20 experienced analysts, and the portfolio’s identifiable and sustainable competitive advantages: its clearly articulated alpha thesis and consistent alpha generation.
In the U.S. equity mid-, small or SMID-cap category, there were two winners as well. Philadelphia-based Glenmede Investment Management won for its Small Cap Equity portfolio. In assessing the product, one PMC analyst said simply that Glenmede “crushed it in 2013.” Led by portfolio managers Bob Mancuso and Chris Colarik, the strategy operates in a crowded area, making it even more impressive that its emphasis on buying quality companies has provided investors over the past 10 years with a product that has generated 181 basis points of annualized alpha.
The second winner in the category was Reinhart Partners for its Mid Cap Private Market Value strategy.
PMC’s analysts highlighted Reinhart’s unique investing process that helps pick names for the portfolio by assigning an intrinsic value to companies through finding comparable companies that were recently involved in a merger or acquisition. Lead portfolio manager Brent Jesko also eats his own cooking: all of his liquid worth is invested in the portfolio.
In the third category, international or global equity, Denver-based Cambiar Investors won for its International ADR product.
PMC analysts called Cambiar a “successful organization, with widespread equity ownership among employees, a stable and highly experienced team which focuses on a select number of related strategies” and has produced over its now eight-year-old strategy’s lifespan annual alpha of more than 2%.
