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Core Satellite Portfolio Construction

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Addressing Three Primary Considerations

The core satellite portfolio construction process is geared towards addressing three main considerations of the investment process: costs, volatility and total returns.
Incorporating a strategic blend of core (beta) and satellite (alpha) investment vehicles is an investment strategy we think investors can deploy in order to reduce the ongoing costs of a portfolio, while maximizing the portfolio’s returns on a consistent basis. Traditionally this strategy has been employed with the mindset that certain asset classes are too efficient for active management to work, and some asset classes are still setup for stock picking to thrive.
Evidence to support this concept is made evident by the increased struggle for active managers to provide consistent alpha over their respective benchmarks. An advancement on this philosophy doesn’t force an investor to subscribe completely to the Efficient Market Hypothesis (EMH). An alternative to this, is the concept that alpha is not dependent upon the EMH, but the combined factor exposure a given portfolio’s holdings embody along with the skill level of an active manager and their ability to execute on a consistent level.
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Core Exposures

Core Exposures

Preferably an all country global beta exposure to encompass the opportunity set covered within the model portfolios.

Core Exposures

Core exposure aims to maintain some exposure to opportunities passed along by active managers that come in and out of favor of the portfolio managers.

Core Exposures

The incorporation of multi-factor rules based ETF’s could add increased potential for more attractive risk adjusted returns over the course of a market cycle.

Core Exposures

Several securities may potentially be leading contributors to market indices, but are not held by portfolio managers for reasons they might be confined to due to investment process.

Core Exposures

Low cost broad index strategies

Core Exposures

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Satellite Exposures

Satellite Exposures

Reasonably priced active strategies.

Satellite Exposures

Asset classes where broad exposures are not efficiently achieved.

Satellite Exposures

High conviction, tactical exposures.

Satellite Exposures

Alternative asset classes (long/short strategies, real assets, private investments).

Satellite Exposures

Highly skilled managers.

Satellite Exposures

Overview
Overview
Aquisitions
Investment Management
Accounting & Reporting
Property & Construction Management

These principles serve as the foundation for our investment approach.

Alpha Generation
Optimal Asset Allocation
Cost Efficiency
Blended Vehicle Approach
Evidence Driven Decisions

Foundation

Alpha Generation

We believe generating alpha begins with downside protection.

Foundation

Optimal Asset Allocation

Efficient allocation creates more value throughout the portfolio, potentially insulating your investments from unnecessary volatility and risk.

Foundation

Cost Efficiency

Investing in the best share class available allows for investors to compound the savings, increasing risk protection.

Foundation

Blended Vehicle Approach

We understand the investment world is continuously evolving. In order for us to deliver smart and efficient portfolios to our clients, we utilize a mix of core beta and alpha satellite investments.

Foundation

Evidence Driven Decisions

Each investment decision we make is based on the foundation of facts to support an investment thesis.

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Aquisitions

Aquisitions

A Chance for Growth

GFG’s acquisitions team identifies well-located and exceptional assets with opportunities to improve leasing, market positioning, physical layout, and capital structuring.

To date, GFG has deployed approximately $700 million of equity investing alongside institutional and private investors, endowments, investment managers, and family offices.

$
Million

Private Investors

Endowments

Investment Managers

Family Offices

Accounting & Reporting

The accounting team provides asset-level, joint venturing, tax structuring, audit-monitoring, and financial reporting services for the firm and its investment partners. With backgrounds and experience from the Big Four accounting firms, GFG Capital’s professionals mitigate financial and administrative investment risk while providing efficient management execution.

Asset-Level

Joint Venturing

Tax Structuring

Audit-Monitoring

Financial Reporting

Leasing, Construction & Property Management

The firm’s in-house property and construction management capabilities allow for direct investment oversight from hand-on ownership and increased tenant interaction, further solidifying the firm’s relationships and standing within the real estate industry.

Our Strategic Approach

We seek to acquire and manage assets that reflect the “new world” being shaped by globalization, digitalization, and changes within our society.

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