Why Sector

We are investors, just like you.

We share the same fundamental aim of protecting and growing the real value of our wealth and we have the same means to achieve it. Hence, we face the same basic challenges, day in, day out. We feel like you, we think like you.

Secondly, we are not an ‘asset gatherer’, meaning that our only route to success, indeed survival, is providing actual solutions to your investment problems. If we don’t add value to you, we don’t perform for ourselves.

Finally, and crucially, our money is at stake, side-by-side with yours. Sector AM is predominantly owned by us, the professionals working in it. It’s our business. Our investment partners invest a relevant part of their own money in their funds but, even more importantly, the true alignment of interests is ensured by our business model: our autonomous investment teams are majority equity owners in their own investment boutique, which means their main financial incentive is not their fixed or incentive fees, but the intrinsic value of their investment company. Therefore, we can potentially lose far more than an investor in our funds. In essence: if you lose, we can lose more.

We can’t control outcomes, but we can control processes

Investing, to us, is not trying to predict what is going to happen, an approach we believe is doomed to failure. Rather, we strive to understand the range of what might happen and build portfolios aimed at delivering convex payoffs for such range of possible outcomes.

Simplicity

Highly complex systems result in outcomes whose apparent precision comes at the expense of robustness: often a recipe for dramatic losses when markets turn. We are convinced simplicity and frugality are the best way to deal with the complexity of reality. And, simplicity, frugality and transparency allow our investors to understand the risks of their investments.

Business Model

We are a multi-boutique firm with fully autonomous investment partnerships. This allows the investment managers to focus solely on what they do best – investing money - without being constrained by any ‘house view’ and without being distracted by ‘ancillary’ services such as marketing, operational, legal, and compliance. At the same time, our fellow investors can rely on at least two layers of independent expertise in Risk Management, firstly at investment partnership level and then at Sector Group level. Notably, we scout, select and retain only investment partners and strategies we believe will generate superior performance: commercial fads play no role in our choices.

Crucially, our model is based on a significant equity ownership of the investment managers in their own boutique, which ‘forces’ them to align their interest with those of our fellow investors.