Morgan Cowen | Strategies

Strategies

Strategy

Morgan Cowen investment strategy is to invest with small & mid-cap local partners based on our basic belief that the investment business is a people business that requires local knowledge for best performance. Our strategy is to combine their skills with our own and to support them with good governance to create dynamic portfolios for our investors.

Diversified, Small & Mid-Cap

We use our teams' local knowledge and networks to source some of the best specialized and niche operators in Asia. We create diversified investment portfolios which are characterized by their breadth of sectors, markets, strategies and partners. 

Managed Risks

Whilst being committed to maximizing absolute returns for our investors, we also pay due attention to managing the risks associated with our investments. Unanimous approval of the Investment Committee is required to authorize each investment. Our investment selection process is based on prudently screening and selecting the market opportunities and local partners, skillful due diligence & contract negotiation and efficient tax structuring. Morgan Cowen creates effective control within our investments by negotiating good governance structures, allowing insight and a level of control down to the individual asset level. Once Morgan Cowen has finalized its investment, we conduct continuous & pro-active monitoring of investments, working closely with our local partners.

Pro-Active Management

We conduct an ongoing four-stage pro-active process for managing our investments that involves continuous assessment of our portfolio, the markets, local operating partners and individual assets.

Portfolio

We have built a proprietary risk/return assessment model which is updated periodically. The model acts as a monitoring tool to continuously assess our funds' overall risk profile and return projections.

OUR INVESTMENT APPROACH

Morgan Cowen investment professionals operate as one team, applying one investment philosophy and process across our core strategies.

We believe that indices are historic and do not reflect future opportunities. Therefore, we are not influenced by the benchmark or our peers, preferring to focus on growing the absolute value of clients’ capital over the long run. These beliefs are reflected in our fundamental quality stock driven approach, and our portfolios have a high active share.

Quality is essentially determined by all internal as well as external factors impacting a business and its long-term prospects. However, we believe that...

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OUR PHILOSOPHY

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COMMITTED TO ESG PRINCIPLES

We have a long-established interest in Environmental, Social and Corporate Governance (ESG) issues. We believe that ESG issues can affect the performance of investment portfolios to varying degrees across...

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INVESTMENT STRATEGIES

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EXPERIENCED MANAGEMENT

Our unwavering pursuit of this goal has established us as a preeminent investment management firm. Today, our firm remains investment centered and guided by a corporate strategy that focuses on maximizing our clients' returns.

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Diverse Product Line-up

Morgan Cowen offers a broad range of investment products. Our management teams are guided by well-defined, repeatable investment processesand are dedicated to fully invested, active management approaches.

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Allocation Expert Tool

The Allocation Expert Tool is a proprietary model developed and enhanced internally with assistance from external resources, including a number of leading academicians and other experts. Our AET is a financial simulation tool that we utilize to assist our clients with the asset allocation decision. With this tool, we help our clients understand the expected outcomes...

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It reflects significant changes, both in macro and real estate fundamentals. Additionally, the model tracks changes in key parameters which may affect our local partner’s capability to execute the identified strategy and deliver the returns.

Markets

Our teams travel extensively and have built relationships and experience across regions to gain maximum market knowledge. Whilst our partners are targeting their own particular strategy, we monitor all changes in the market place that may impact a strategy’s likelihood of success. We also maintain a close watch on the changes in the legal and tax environments, and other factors that can potentially have an adverse impact on returns.

Local Operating Partners

In addition to attending Advisory Board and investor meetings, we maintain an open and continuous dialogue with our local operating partners at both senior and administrative levels. Among other things, we focus on the partner’s alignment, potential conflicts of interest, dedication, staffing, execution of strategy, as well as opportunities for co-investments.

Assets

A strong market network and our teams' extensive direct real estate experience enables us to develop an independent view on the portfolio and to have a fruitful discussion with our partners. Together with our partners, we continuously assess the business plans of each asset, the underlying assumptions, asset management initiatives and the valuation of the asset. Our detailed assessment of the underlying assets is shared with our investors as a part of our quarterly reporting.

Fixed Income

Morgan Cowen expertise covers among other strategies:

Process

Morgan Cowen fixed income investment process focuses on the active management of spread and credit risk in lieu of interest rate risk. By utilizing extensive credit research, economic models, security option-adjusted analysis, Morgan Cowen is able to identify and capitalize on opportunities and pricing inefficiencies in the bond market.

Within the course of this active portfolio management, Morgan Cowen employs balanced portfolio construction with exposure to all broad sectors the fixed income market as a means of reducing volatility of returns relative to portfolio benchmarks. Portfolio duration is maintained between 90% and 110% of the benchmark in order to limit the portion of relative performance tied to an interest rate forecast, leaving sector allocation and individual security selection as the primary drivers of relative performance.