Cadogan Park Advisors Inc. manages discretionary investment portfolios for private investors and multi-family offices. Our goal is to strike a balance between wealth preservation and consistent income generation. We see ourselves as stewards of wealth across multiple generations with a discreet boutique mindset.
Cadogan Park was formed in 2015 emphasizing crossborder and expatriate investment management. Cadogan Park is a registered portfolio manager in B.C., Alberta, Ontario and New Brunswick and a registered investment advisor with the SEC in the U.S.A. Cadogan Park owns an affiliate, Firethorn Partners LLC, that is based in Houston, TX. Cadogan Park is also an Investment Fund Manager and Exempt Market Dealer and owns an affiliate in London, UK. Cadogan Park and each of the affiliates are independent, 100 per cent partner owned and manage wealth across generational families, foundations and trusts throughout the US and Canada.
The Investment Team concerns itself with the relative positioning of the investment process and matches the appropriate investment strategy to that outlook. The overarching investment objective for our clients is to achieve consistently high annual returns with low volatility and low correlation to broad equity indices. We are strong subscribers to a multi -layered investment approach. We don’t label ourselves classic value, growth or GARP investment managers. Our investment approach is an involved, style agnostic process which seeks to identify trends in the current financial market environment. Once a trend has been identified, we attempt to purchase investments in a certain sector or area of concentration. Bearing in mind that investment styles go in and out of favor as the markets continually change. In the case of a down-trending market or in the absence of clear market leadership, particular emphasis is placed on capital preservation and the tactical use of cash and cash equivalents. The overall goal of our investment process is capital preservation and the capturing of opportunity through an overlay of strategic asset allocation and sector shifts.
We screen for specific fundamental criteria within our stock selection universe and maintain several baskets of sector defined securities. We then match several market and sector factors that may be at play or present in the current environment. Applying this bottom up and top down criteria allows us to match those investments better suited for the environment. Like driving a sports car up a mountain highway on a clear summer day, the same may not be suitable in a wintery environment and where an SUV may be more appropriate.
With discretionary macro strategies that rely upon the evaluation of market data, relationships and influences, our Global Macro approach is a top-down, style agnostic process implemented to provide assessments of the current market environment and also to indicate if change is abreast. While importance is placed upon an assessment of the investment’s balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential, and management ability – our objective is to focus on key trends and maintain our portfolio directional concentration if the trend remains constructively intact. We manage each of our portfolios in a consistent manner and we often hold strategic amounts of cash. Each of our clients’ portfolios is different, whereby we allow customization – so you won’t find a pooled or cookie-cutter approach with us.
At the beginning of each new relationship, we endeavor to get to understand each of our clients. Typically, we start off by developing an appreciation of each client’s financial needs, objectives, goals and expectations. This further develops into an understanding of their risk and return expectations, cash flow or income needs, tax complexity and time horizon. We then translate these goals and objectives into a framework for discussion that becomes embodied in an asset mix strategy that is set out in a written Investment Policy Statement (IPS). Each IPS is aligned with one of five firm mandate definitions (models) that provide us with a framework to manage client portfolios. These mandates are comprised of multiple strategies, with a proportional mix of cash, bonds, listed equities, or alternatives.
Designing a portfolio that is diversified and considers a client’s mandate is important. We must also be mindful that too much diversification can lead to market-like, highly correlated returns. Therefore, our goal is not to copy an index, in both risk and return, but to provide stable performance as a wealth manager, using a limited complement of 30-50 investments plus cash and cash equivalents.
