Our platform matches high-quality, niche, emerging managers with institutional investors and family offices that are seeking alpha from unique investment opportunities.
We use a global network of contacts across a variety of industries and disciplines to source undiscovered investment managers that are capable of generating sustainable alpha over time. Our process begins with screening methods to identify portfolio managers that are well-connected in emerging and frontier markets with an interesting pipeline of both public and private investment opportunities.
Once we identify potential investment managers that offer unique and niche investment strategies, we develop these managers with co-investments or smaller mandates to prove out the investment thesis and to help them build a track record.
We also nurture the managers and monitor the risk-adjusted returns for a preliminary period before presenting them to our capital providers which include large hedge funds and family offices.
While each emerging manager has a distinct strategy and investment style, the managers often share some similar characteristics:
Investment opportunities in frontier and emerging markets
Generating returns from unique niche opportunities
Higher levels of portfolio concentration
Motivated team with high employee ownership
Once the portfolio manager has successfully built a track record via the initial mandate, or through direct co-investments, we prepare the manager to present the fund and strategy to larger institutional investors, typically US-based hedge funds and family offices.
In return for a substantive seed investment (typically $5 million to $10 million), the profits and economic benefits at the management company level are shared with the seed investor.
We expect each investment manager to achieve a portfolio return of at least 20% annually, and both the management fees and performance fees are shared with the seed investor.
Our Managers Use ESG to Generate Alpha
Investing in companies that will outperform over the long run is one of our main goals at Ashton Global, and ESG is one way to do that. ESG investing prioritizes factors that will become more important in the future. We believe socially responsible investing as much more than eliminating certain sectors from a portfolio. We identify more complex factors related to sustainability, employment, corporate governance, fraud prevention, and government relations.
At Ashton Global, we look for consistently profitable companies that have what Warren Buffett calls economic moats. These firms have managed to elevate themselves above the price competition that inevitably pushes profits toward zero. We have a focus on management like most institutional investors, and we realize that management can destroy value in a company through poor governance and accounting fraud. Managers can also destroy value through improper recognition of regulatory frameworks which are constantly changing.
By focusing on ESG criteria, companies can build their reputations among key stakeholders and enhance the value of the firm. As the world becomes more affluent, future generations of consumers are also likely to place an even greater emphasis on ESG. We insist that all of our portfolio managers incorporate ESG considerations into the investment process.