Investment Due Diligence
Astute investors probe beyond the surface of positive performance to understand how an investment manager achieved their returns and whether the firm can repeat this success in varying market conditions. AMG National Trust Bank’s sophisticated investment due- diligence program helps us go beyond the tactics of market timing and momentum management, which have no persistence in volatile times. Identifying managers with enduring return characteristics requires that we develop a deep, visceral understanding of a manager’s strategy as well as the attributes driving performance.
AMG’s Investment Group uses intense quantitative screens to narrow the list of potential investments suitable for our clients. Quantitative screening is followed by a structured qualitative review process designed to assess risks hidden to numerical risk management techniques. Qualitative analysis allows us to shield our clients from potentially disastrous consequences associated with briefly tenured lead investment managers, sudden shifts in a manager’s investment strategy, and outright changes in a manager’s investment processes. Taken together, our unique approach allows us to manage risk by identifying potential problems before they burden our clients.