We believe it is a combination of five factors:
- The skill of the sub-advisors;
- The mandate that each sub-advisor run a concentrated sub-portfolio of only their highest conviction ideas;
- The inherent diversification that comes from a multi-manager approach;
- Litman Gregory’s responsibility for due diligence, monitoring and overall operations of the funds; and,
- The willingness of Litman Gregory to limit assets to levels that preserve the managers’ ability to own only their highest-conviction names.