The Process – Adding Value
We listen to our clients, identify their goals and assist them in structuring portfolios appropriately from strategic asset allocation, re-balancing, market timing and investment manager selection perspectives.
Fourth Street Performance Partners, Inc.
is focused on providing value-added investment consulting services. Our disciplined, prudent process, led by experienced consultants, helps ensure that our clients act as good stewards of their organizations' assets and optimize the performance of their investment portfolios.
Adding Value Step-By-Step
Our Five Steps to Linking Capital with Opportunity
“The custom reports and executive summaries we receive from FSPP demonstrate that the consultants understand our foundation’s investment policy and goals. They are continually reviewing our portfolio to ensure we are apprised as to how the changing financial markets impact our investments.”
Frequently Asked Questions
Q. The last firm that advised our organization sent us three different consultants in a 16 month period. Does this reflect the practice of Fourth Street Performance Partners?
A. Our firm is founded on the belief that long-lasting relationships lead to successful investment programs. We take our client relationships seriously and want to earn your trust. As such, our firm is structured so that each client works directly with a senior consultant. Our senior consultants possess over 25 years of experience and are also owners of the firm.
Q. Explain the “full transparency” in your fee base.
A. FSPP receives 100% of its revenue from its clients. We receive no revenue from fund managers or investment products, so you know exactly how much you are paying for our consulting services. This fee structure enables us to focus on optimal investment strategies that improve portfolio performance. Other consulting firms’ programs may limit investment options to proprietary platforms or investment products that provide them with additional compensation. FSPP's fee structure promotes total objectivity and ensures that we sit on your side of the table.
Q. How will your approach to developing our asset allocation contribute to performance?
A. While asset allocation is a key factor in the success of an investment program, our philosophy is not to simply check off all of the investment style boxes but rather to focus on superior return asset classes and styles. While we believe in highly diversified portfolios, we will not compromise performance. FSPP’s approach achieves diversification without sacrificing performance.
Q. How does FSPP's process add value?
A. There are three primary ways we add value to our clients’ investment portfolios: asset allocation, manager selection and cost reduction. The first way we add value is through asset allocation. We work diligently to see that all client portfolios are structured appropriately with an acceptable level of portfolio volatility, maintaining a reasonable range of exposures around these asset allocation targets. In periods of extreme market dislocation, we provide advice to clients regarding tactical exposures or over-weights to certain asset classes or sub-classes. With respect to manager selection, active management risk should be focused on those asset classes with a significant opportunity to add value, while minimizing that risk in more efficiently priced asset classes. The third and surest way we add value to our clients’ portfolios is lowering costs wherever possible.