Investment Philosophy
Hamilton Lane’s investment philosophy has been consistent throughout our 20-year history and is embodied in our approach to portfolio construction.
We search for top-tier fund managers whose style and strategy complement each other, while also seeking diversification by industry and geography in order to allow for appropriate risk adjusted returns.
Our access to top-quartile funds comes from our market position, global network, prestigious client roster and a pro-active effort to find and source the best opportunities available. We have a history of successfully accessing top-tier managers for new clients and expanding relationships for our existing clients.
Our investment philosophy is based on intelligent portfolio design, acknowledging that performance is best generated through:
- A thoughtful, market-driven approach to investing
- Prudent diversification that takes advantage of the most attractive opportunities but does not seek to index the asset class
- An emphasis on J-curve mitigation
We use both a top-down and bottom-up process in building portfolios.
From a top-down, macro perspective we take into account:
- Performance history of the sub-asset class
- Our perspective on the market's future return
- Clients risk/return profile and desired cash flow pattern
- Geographic, vintage year and industry diversification
From a bottom-up, micro perspective, we determine the appropriateness of individual investments based on:
- In-depth quantitative analysis
- Qualitative breakdown of all aspects of the fund such as management team, history, track record and reputation
Our approach allows us to make opportunistic investments in funds with compelling performance or in sectors that seem poised to outperform. From our managers we are seeking unique yet complementary return streams.