Our investment team continually evaluates the entire universe of private managers and seeks to select top-tier managers that are focused on their particular strategy or style over the long term.
Our selection framework is based on our "Four Principles": People, Process, Performance, and Philosophy
People
Private market investing is a hiring decision, and we seek to better understand if a team possesses unique analytical talent, anticipates market movements, exhibits portfolio management skills, and has deep conviction that allows them to outperform on a long-term basis
Process
Process yields repeatability and helps identify managers whose success has been based on their investment skill and process, rather than luck. We look for well documented investment processes from sourcing to exiting, with clear decision making based on individual accountability
Performance
Gridline has developed a set of quantitative screening tools to analyze performance to Public Market Equivalents (did the manager benefit from a general uptick in markets or truly outperform), and compare a fund’s performance to a customized peer group of funds with similar investment styles
Philosophy
We prefer long time horizon strategies, where fund managers are not distracted by short term noise or near term results. Most importantly, there is a high degree of alignment of interest with investors with a focus on the structure of the organization, management of asset capacity, and fee/economic terms