Bill Carpenter

AMG manages accounts as capital preservation portfolios that strive for low to no volatility through paired assets-to-liabilities and/or buy-and-hold strategies. The types of assets managed in institutional clients’ accounts generally consist of US Government and US Government Agency securities and money market funds. High-quality corporate debt securities may also be used but are not currently. The type of securities held in each account depends on the investment objectives established for each account. The portfolios are traded only to build and meet clients' required cash flow requirements, rather than attempting total return strategies.

GCM specializes in the management of small-cap growth equities. The firm believes that a portfolio of companies growing faster than the market and bought at attractive prices will outperform the market over time. Their portfolios are built through a bottom-up research process, focused on fundamental analysis to uncover companies that are likely to exceed Wall Street's earnings estimates. Their team of analysts initially identifies those small-cap companies that fit their GARP criteria: exceptional earnings growth exceeding and a forward p/e ratio at or below the market. They then develop an internal earnings model and target price for each potential purchase candidate. GCM's analysts spend time with company management in order to better understand the contribution of various business units and products to the company's performance. They interview customers, competitors and suppliers to confirm their investment thesis. They also examine liquidity and do not pursue companies where their proposed position is greater than 10 days trading volume. The firm's purchase decision is then driven by their fundamental analysis, culminating in positive disparity between their internal earnings estimates and Street estimates. A key portion of this analysis entails contacting clients, suppliers, and competitors of the company, a process described further below. Portfolios are built through a bottom-up investment process. Analysts present ideas to the investment team after having conducted their fundamental analysis. A majority of the analysts must consent to the purchase of a new position. When a purchase is made, a target price is set and the stock is bought across all portfolios in the same percentage. All of their client's portfolios hold similar assets at any given time, allowing for differences in purchase and sale timing. GCM utilizes a rotation when buying or selling stocks to ensure that all clients receive similar execution over time.

AMG manages accounts as capital preservation portfolios that strive for low to no volatility through paired assets-to-liabilities and/or buy-and-hold strategies. The types of assets managed in institutional clients’ accounts generally consist of US Government and US Government Agency securities and money market funds. High-quality corporate debt securities may also be used but are not currently. The type of securities held in each account depends on the investment objectives established for each account. The portfolios are traded only to build and meet clients' required cash flow requirements, rather than attempting total return strategies.