The overlay manager is an artist.  With numerous asset classes from which to choose, the overlay manager must analytically and creatively structure the portfolio optimally.  Optimality is a function of constraints such as cash flow needs, taxes, risk tolerance, and demand for excess after tax return. 

This manager of manager function also entails due diligence and monitoring of money managers.  Monitoring of managers is the most neglected of the portfolio management process as it involves time and expertise.  The overlay manager ensures that the fees that are taken from the portfolio for portfolio management are deserved and warranted.  

Champion follows a four phase due diligence process when selecting new managers for a portfolio.  Existing managers are monitored using the same four phase process, in addition to manager interviews conducted at least semiannually to question changes in the process, management team and any other material changes.  We have access to more than 10,000 separate accounts and 26,000 mutual funds, covering more than 14 asset classes.  Internally generated computer attribution models are used to identify the contribution to total portfolio return to managers, asset allocation and tactical decisions.  

Because Champion Capital Research is independent and free of conflicts of interest, it can be completely objective regarding the hire and fire of vendors and money managers.  Working for you and you only, money managers, custodians and vendors will be replaced when their marginal cost exceeds their margin benefits.