Alternative investments can offer meaningful diversification, but access, experience and manager selection matter.
In this follow-up video, Kyle Smith, Portfolio Manager, explains why Newport has become a leader in alternative investing within Canadian wealth management. He discusses the role of experience, relationships, scale, due diligence and independence in helping Newport identify high-quality opportunities for client portfolios.
Transcript
I’m Kyle Smith, a Portfolio Manager at Newport Private Wealth.
I wanted to tell you why Newport has become a leader in alternative investing within the Canadian wealth management industry.
Experience matters.
Since inception, Newport has been investing in alternative asset classes. This strategy has its roots in our team’s unique and varied professional experiences that each individual brought to the table when they joined Newport.
Alternative investments may be the latest buzzword, but it is an asset class in which Newport has more than 20 years of success.
Relationships matter.
Newport partners with best-in-class institutional managers from around the world. Our extensive track record and respect within the industry puts us on radar screens, opens doors and presents opportunities.
We are invited to participate in investment ideas that are not typically available to most individuals or firms.
Size matters.
With $6 billion in assets under management, we have become a force to be reckoned with. Given our size and status, we are sought out as a partner, providing Newport with the luxury of choice when it comes to assessing opportunities.
The ability to make multimillion-dollar allocations is a barrier to entry for most investors seeking a foothold in the institutional alternative investment universe. Newport faces no such barrier.
Due diligence matters.
We seek out the best managers in each asset class, going through an extensive due diligence process to handpick each one. We start by narrowing the field to best-in-class candidates and then evaluate every aspect of their business.
Lastly, we simulate returns with our existing managers to determine the optimal mix and fit.
Once we select a manager, and as performance is proven, we grow our investments with them over time.
Independence matters.
Newport is built upon the premise that we best serve our clients by making geographic and asset allocation decisions. From there, we identify and allocate capital to high-quality specialty managers.
This affords us many freedoms. Our opportunity set is infinite. We can go anywhere and invest with any firm that meets our elevated standards for partnership.
Our process eliminates the conflicts of interest embedded in other wealth management firms.
We are the proverbial queen on the chessboard. We can move in any direction.
When an investment opportunity has run its course, or if a partner is not meeting our expectations, we can take back our capital. If new opportunities arise elsewhere, we can pivot.
Our investment strategy drives decision-making at Newport, unencumbered by the need to manage internal managers and resources.
In short, Newport brings unique levels of expertise, relationships and experience to the alternative investment landscape.
We are intentionally designed to maximize opportunities, independence and flexibility. All of this gives our clients high-quality access to the alternative investment landscape.
