Improvements in data resources, computer processing capabilities, and most importantly the experience, of many years of research conducted by the project, on markets around the world, enabled us to manage real portfolios, under real conditions in numerous market environments. This investment process and research have been used by both Bruce and Steven in directly managing portfolios over the years with enormous success.
The ISN project also included examining fair value. Stock markets and individual stocks all have a fair value that properly reflects the enterprise’s ability to reward the investor for owning the company. When stock prices exceed fair values to the extreme, whether high or low, stocks become overvalued and undervalued. When this occurs, investors can increase portfolio value by managing accordingly. It can be applied in portfolios of all sizes and mandates. The ISN project has applied this process to American portfolios successfully and is now part of the program.
Now a new project has started from a new question by Bruce and Steven, can we develop a research platform such that other investment professionals can use our experience, and knowledge, to improve management of global portfolios, and as well, do it in an improvingly efficient manner? We believe the answer is yes, and we encourage you to join us in this adventure.
Steven Albrecht has been managing investment portfolios for three decades. Clients have ranged from private individuals, families and their foundations to large institutions and their respective retirement programs. He has created and managed: active portfolios, income-focused portfolios, tax-efficient portfolios, index funds, exchange-traded securities and mutual funds. Throughout the years, Steven has blended investment management with technology and statistics. This style was developed as a combination of two careers; one career in information technology and another in investment management. After college, he developed a career in the global information technology industry and brought those skills to an investment management career.
Steven has also managed and turned around two investment management firms that expanded in services, revenues and profitability. The first grew from a sole product, single distribution channel into a $22 billion multi-portfolio enterprise with several distribution channels. The second was a trust company that advanced into one of the largest New England based firms serving clients across the country and 6 international markets with a broad scope of services that included: investments, trust counsel, and tax strategy.
Involvement in the ISN project started out decades ago with Bruce on a simple question of whether it was possible to determine how much impact changes in economic conditions actually have in real movement of stock prices? This question was contemplated before personal computers were prevalent and well before valid historical information on economic factors or international stocks were readily available. Most computers still used Hollerith cards, reel-to-reel tape or massive hard disk drives that filled environmentally controlled rooms for data storage and modems operated at 300 baud. Initial results were favorable and the project has continued to advance over the following 30 years.
My 30+ years in asset management has taught me that one needs to be systematic in building portfolios. One size does not fit all. Clients need portfolios constructed to meet their individual needs within their risk tolerance. Managers need to know why each position is held in the client’s portfolio and have the experience to know when to make changes. Never let personal ego interfere in investment decisions and delegate specific activities so that the best of breed is always available to the client.
Bruce has spent over three decades in the asset management business in institutional, private client and plan sponsor asset management.After earning a BA degree in European History & Economics at Emory and a Graduate Degree in Finance at the Manchester Business School in the UK, Bruce entered the City as an international investment analyst working for UK stockbrokers for five years. Bruce developed early systematic investment models and published early reports on international asset allocation.Bruce then moved to asset management initially as a portfolio manager and then as Chief Investment Officer for Pictet London for 10 years handling the portfolios of major US & UK pension funds (GM, Coke, Honeywell, Rolls Royce, etc) and significant private clients. Bruce later held a similar position as Director and Global CIO for Rothschilds in London again managing portfolios for major institutions, individuals, and funds. For 12 years Bruce served the government of Abu Dhabi as Chief Investment Office European Investments and a member of the government’s asset allocation committee in the Abu Dhabi Investment Authority, the manager of the country’s reserves. Living and working inside OPEC gave a unique perspective on investment management.
Additionally, Bruce was a founding Director of the Institute of Quantitative Investment Research in 1987 serving as the Research Director for many years.