Process & productivity: institutionalizing portfolio decisions

As the former #1 Institutional Investor (II) ranked Chief Investment Officer at Morgan Stanley, Steve Galbraith made his career espousing the value of combining quantitative and fundamental philosophies. But when he left Maverick Capital to create Herring Creek Capital, he left behind one of the most efficient, effective, expensive and technologically rich environments on Wall Street.

The Challenge: Institutionalizing portfolio decisions 

 

  • No Budget - The had a limited budget to support the investment team.

  • Emphasizing Differentiation - To compete with bigger teams, they wanted to emphasize the unity and strong collaborative nature of their small team and investment process (we are better and can do more), but current processes were fragmented & siloed - financial models, notes and emails were in multiple locations and strong collaboration was difficult to to prove to investors. 

  • No One is Like Us - As a small team, they wanted to be tech-forward - they had to organize their investment process, monitor their intelligence, and take action much better than funds with greater resources, but were concerned about changing their process, as no commercial solution could be configured to their specific requirements.

The Solution: The EDS Decision-Support & Analytics Platform

A formal, measurable process that aligns investment decisions with conviction and return, significant time savings without having to re-engineer institutional processes, and a feedback loop to promote continuous improvement.

  • Centralized workflows and data in an intelligent platform that could rapidly assess their current portfolio, streamline research processes, and analyze past decision & inputs to drive continuous improvements.

  • EDS was more affordable, easy-to-use and more flexible than competitive solutions.  

  • Configured to their specific requirements/workflows: Comprehensive dashboards that integrate information from across sources, coupled with a digital, systematic process – built to mirror the process already in place across Idea Generation, Portfolio Construction & Risk Management

EDS Value Added

"Since we implemented some quantitative changes in tracking expectations around quarterly earnings, cumulatively we have added almost 800 basis points of alpha in our short security selection.”

"No question. EDS has helped us create increased alpha and stronger discipline"

- Steve Galbraith, Chief Investment Officer (CIO) of Herring Creek / Kindred Capital

 

Working with Leading Firms

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"EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, leveling the playing field relative to large incumbent vendors."

Jon Neitzell - Anduril Partners

 

EDS Provides

Improved Performance

 

  • EDS helps you measure and improve your investment process - making it easy to analyze where your team succeeds and where the blind spots are​​

  • Keeps all Intellectual Property (IP) in-house

  • Creates accountability & transparency within the investment team

Lower Costs

  • Consolidating into one vendor and system reduced HF’s overhead.

  • HF did not have to hire additional personnel

Efficiency & Automation

 

  • Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.