Nightingale employs a rigorous and repeatable process to create concentrated, high-active return portfolios. We believe these active strategies complement passive approaches to North American Equity allocations and can serve as a high-quality satellite component of a core-satellite investment program.
Our research approach leverages the work of our research partner, Equity Risk Sciences, to systematically reduce our research universe to companies with lower financial and valuation risk than their alternatives.
We overlay our fundamental research process to identify the appropriate holdings, around 20 in our multi-cap strategy and around 30 in our small/mid-cap strategy. We intend the strategies to deliver annualized volatility of returns similar to their underlying benchmarks, yet to have high levels of active risk and active share to ensure that they do not mimic the indices.