At the core of Kensington’s investment process is manager selection. Ensuring that KHF1 not only holds a diversified strategy but a strategy consistent of managers set to outperform their peers is critical to our investment process.
Kensington continues to believe that emerging managers tend to outperform their much larger, better known competitors. Although not always the case, KHF1 utilizes an allocation tilt to emerging managers and statistical analysis has supported that these younger, hungrier and more nimble managers yield superior performance with lower volatility, both in the long and short term.
In addition to an emerging manager tilt Kensington is consistently monitoring their current managers and performing analysis on potential new investments in order to ensure that their portfolio holds the best possible combination of alternative strategies.