"We have designed our process with long-term client goals in mind. We differentiate ourselves by focusing on risk first when investing and long-term value creation for our clients."
- Brandon Snow, Principal & Chief Investment Officer, Cambridge Global Asset Management | September 2017
The three pillars of the Cambridge Philosophy
The main tenets that have propelled Cambridge to a $20 billion+ asset management firm are the critical elements that direct every investment decision made:
1. True Active Management
Cambridge's portfolios are constructed using a bottom-up approach, while providing diversification across sectors and, where appropriate, asset classes and geographies. The team combines the best opportunities given the mandate of a specific fund. This results in a very high "active share" compared to many peers. As active share is the percentage of a portfolio that differs from the underlying benchmark, a high active share has the potential to provide opportunities for outperformance.
2. Focus on Absolute Returns
Cambridge understands that wealth creation is a marathon and not a sprint. It is about consistently compounding value over time. Cambridge’s research process is heavily geared towards understanding risks and analyzing the key variables such as revenue, margins, networking capital, balance sheets, historic financials through cycles, and other important building an a risk reward calculation. Cambridge believes that investing in good companies means the upside can take care of itself.
3. Manager Alignment
Cambridge has long believed that owners make better decisions than managers. As a result, the team tries to identify those companies and management teams whose wealth and compensation are tied directly to driving shareholder value creation over time. When Cambridge entrusts a company’s management with investors’ capital they want to make sure that management’s motivations are aligned with those of shareholders. This element of Cambridge’s investment philosophy extends to Cambridge itself: Compensation of team members is linked to the performance of their funds.
1. Stephen Groff has been named the co-winner of the Breakout Fund Manager of the Year award in Canada in 2015. This award honours excellence in the Canadian investment fund industry and was developed by Morningstar Research, Inc., a leading provider of independent investment research, to recognize “up-and-coming managers worthy of investors’ attention.” Mr. Groff has also been named one of the top investment minds in Canada in 2015, 2016 and 2017, according to the TopGun Investment Minds rankings, published by Brendan Wood International (BWI), a performance and career advisor assisting both firms and individuals. Sell-side professionals vote for the portfolio managers they believed to be the leaders of thought in the industry during the past year. TopGuns make up slightly less than ten percent of the nominees in a given year.
Brandon Snow leads the analyst team and directs the global research activities at Cambridge Global Asset Management. Prior to joining CI in 2011, he was portfolio manager of two Canadian-focused equity funds at Fidelity Investments.
Stephen Groff has over nine years of investment management experience and was awarded co-winner of the 2015 Morningstar Breakout Fund Manager of the Year and a TopGun Investment Mind in the Brendan Wood International Canadian investment rankings for 2015, 2016 and 2017.¹