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Strategy

  • Comprehensive top-down macroeconomic assessment
  • Bottom-up investment analysis
  • Wary of consensus thinking
  • Emphasis on attractive (cheap) relative valuation
  • Seek opportunities in areas that are early in process of capital formation
  • Tax efficiency
  • Tactical tilts and rebalancing
  • Broad diversification of sources of risk and drivers of return
Benefits to you:

  • Insightful, integrated, forward-looking, global investment structure
  • Hands-on monitoring, risk control, and mid-course adjustments
  • Northside’s strategy lends to a higher level of trust between us

It is axiomatic that growing assets requires the assumption of some level of risk. For most Northside clients, the thought of having to go out and build the family’s wealth a second time is decidedly distressing. This is why we begin with an emphasis on capital preservation. One cannot seek high returns without taking elevated levels of risk, and by risk we do not mean mere volatility — we mean risk of permanent loss. Avoiding such loss is foremost in our minds. Northside’s client investment structures feature broadly diversified strategies with asymmetric expected return distributions and a low reliance on market direction for success. We look for substantial but temporary distortions in pricing relationships, e.g. non-agency residential mortgage backed securities in 2011, or economic activity where the appetite for capital dwarfs the current supply, e.g. U.S. domestic energy production in 2012. There are ways to play offense in all environments, but we never lose sight of the vital importance of defense.