Specialist managers target well-defined sources of alpha within a focused investment universe. They tend to outperform on a risk-adjusted basis and generate returns less correlated with the wider market. As a strategic investor, focusing on specialist managers helps mitigate adverse selection and as a result attracts higher quality managers, maximises returns and helps raise long term capital.
Too many early stage managers fail for non-investment related reasons, or make mistakes which inhibit their ability to perform and raise assets. Stable is “more than just a cheque” to its managers, providing support across operational and investor facing functions which reduces business risk and drives performance.