Drew Edwards

GMO offers investment strategies in many of the major asset classes, as well as multi-asset class and alternative strategies. Within these strategies, a range of investment styles, market capitalizations, and types of securities may be represented. The firm's investment strategies are implemented via pooled vehicles and/or through discretionary advice provided to separately managed accounts, some of which use pooled vehicles.

Usonian Investments manages non-US equity investment strategies that seek long-term capital appreciation by investing primarily in equity securities selected using a value approach. The strategies utilize a bottom-up security selection process based on in-house research. The portfolio construction process uses a combination of quantitative and qualitative analysis to build a diversified portfolio of what Usonian believes are attractively valued securities. Usonian seeks to identify companies that trade at attractive valuations relative to net asset value, with low probability of financial distress, adequate liquidity, and that are profitable over an economic cycle. Usonian Investments employs a fundamentally-driven process to generate positive risk-adjusted returns. The firm invests client funds in non-US equity securities (including common stocks of micro, small, mid and large-cap companies). These securities primarily include stocks traded on non-US exchanges. They may also invest client funds in other securities such as securities convertible to common stock, preferred stock, real estate investment trusts (REITs), American depository receipts, American depository shares, ETFs, warrants, covered calls, long puts, restricted securities and private placements.

Taiyo provides discretionary portfolio management regarding primarily Japanese and Indian equity securities. The firm employs bottom-up, fundamental investment process combined with an active engagement process with management. They begin their research process using their database to screen data to identify attractive companies based on a wide range of characteristics. The basic characteristics the firm looks for when investing include under-valuation, quality business, and competent and open management.

Functions as a hedge fund

For active fixed-income, LBAM's decision-making process incorporates controlled duration decisions, sector decisions, and individual issue valuation decisions. They base interest rate and sector-related investment decisions on our economic growth forecast. The firm uses risk exposure analysis and risk budgeting models to quantify and manage risks associated with strategies that they design to add value relative to the benchmark index. Individual issue selections result from internal research generated by research specialists. They diversify holdings to reduce credit exposure to individual issuers. Eligible investments for core strategies include US dollar denominated investment-grade securities; for core plus strategies the universe of securities expands to include high yield. For passive bond indexing, LBAM seeks to take advantage of risk premiums as they are reflected in individual security prices. These premiums offer compensation for accepting credit and structure risks associated with individual issues. Explicit quantification and control of risks are at the heart of this investment process. The firm uses proprietary risk exposure analysis to analyze yield curve factors and spread-related factors. For each yield curve and spread factor, the portfolio is very closely matched to the index to ensure that the portfolio earns the same return as the index for any change in interest rates or change in sector spreads. Based on internally generated research, they integrate individual issue selections into the portfolio without disrupting the integrity of the portfolio structure. Holdings are diversified to reduce credit exposure to individual issuers. Eligible investments include securities included in the index, plus those that are their equivalents in terms of credit and structure risks. LBAM's high yield bond management decision-making process begins with a macro-economic framework for determining the appropriate portfolio structure according to defensive versus cyclical industries and appropriate quality orientation (between high BB to low B). Once they have established the overall structure, the firm determines specific industry weights and individual issuer selections. Their research analysts focus on identifying securities that exhibit improving credit fundamentals while avoiding those that experience deterioration in their credit quality. LBAM diversifies holdings to reduce credit exposure to individual issuers. Eligible investments include dollar denominated bonds rated below investment-grade including Rule 144A securities and the full range of structures such as pay-in-kind bonds, interest reset bonds and other instruments that are consistent with high yield investing.

ARI focuses on actively managed strategies with a focus on long-term capital appreciation. The firm primarily invests client funds in domestic equity securities and American depository receipts (ADRs).