When it comes to investing, the stakes are high. One bad decision can mean a loss of money, time, or opportunity. While there are many products and strategies an advisor can access and implement, how can they find the best ones to ensure their clients avoid costly mistakes and maximize their returns? 

In this episode, Rusty and Robyn talk with Christopher Hart, Head of Investment Due Diligence at Brinker Capital. In his role, Chris oversees all investment products that advisors can use within their client portfolios. These include interviewing managers and talking to analysts to make sure they're doing what they say they will. He is responsible for ensuring the quality of all investment products curated by Orion and Brinker. 

With over a decade of experience in due diligence in the investment industry, Chris talks with Rusty and Robin about why due diligence is an important step in building an investment portfolio, how to choose a manager or a strategy, and how Orion's due diligence process is different from other firms.

Key Takeaways

• [03:18] - Rusty's review of the market.
• [06:01] - Chris' professional background and what brought him to Brinker Capital.
• [08:01] - What it's like to be the head of investment due diligence.
• [09:02] - Why due diligence is important in building an investment portfolio.
• [10:53] - Chris and his team's due diligence process.
• [14:52] - The amount of work Chris and his team put into due diligence.
• [17:09] - The time it takes for a new strategy to become available to investors and advisors.
• [18:03] - The qualities Chris looks for in an investment manager.
• [21:38] - What a successful investment strategy looks like.
• [23:32] - What causes an investment strategy to be removed from the platform.
• [25:55] - How Chris' due diligence process differs from other investment firms.
• [28:22] - The five P’s of due diligence.
• [30:41] - How due diligence has evolved over time.
• [33:22] - What investors and financial advisors look for in a due diligence manager.
• [35:13] - What Chris looks for in an analyst.
• [38:01] - The person who influenced Chris' investment philosophy.
• [39:33] - Chris' favorite investment strategy.
• [41:23] - How Chris maintains his physical and mental health to perform well.
• [43:02] - The people Chris is professionally grateful to.
• [45:14] - Chris' recommendations for content.

Quotes

[09:36] - "There are so many products out there for advisors to access, and they could spend all day looking at them, reading about them, and trying to figure out which is the best to use in portfolios for their clients. Our job is to filter that universe and bring that universe down to a manageable number." ~ Christopher Hart

[10:15] - "Time is everyone's most precious commodity. Anything we can do to save advisors time and help them deliver better client outcomes is the central tenet of what we're trying to accomplish." ~ Christopher Hart

[27:25] - "Many due diligence firms will pass along fact sheets, pitchbooks, and explainers of how a particular manager does what they do. What a lot of firms are lighter on is opinion around whether they think what those firms are doing is good or bad. And we make a conscious effort to weave that opinion in our guiding star reports." ~ Christopher Hart

Links 

• Christopher Hart on LinkedIn
• Brinker Capital
• Sweet Child O' Mine by Guns N' Roses
• River Road Asset Management
• The London Company
• Jeremy Siegel
• Stocks for the Long Run
• The Future for Investors
• A Wealth of Common Sense
• Ben Carlson
• Mutual Fund Observer

Connect with our hosts

• Rusty Vanneman
• Robyn Murray

Subscribe and stay in touch

• Apple Podcasts
• Spotify
• Google Podcasts

0482-OPS-2/15/2023