Philosophy

Alpha generation - the freedom to perform

New Star offers investors a distinctive investment proposition. In building this, it has focused on creating a culture in which experienced managers are encouraged to be independent-minded in their investment decision-making. The company believes that proven fund managers should have the freedom to back their own judgment, subject always to rigorous monitoring and control.

 

New Star's managers are not forced to adhere to a house investment style. They operate without being told which securities to invest in and without buy-lists or sell lists forced upon them. They hold securities because they have the conviction that they will do well rather than following an index benchmark compelling them to hold securities in which they do not believe. They take personal responsibility for each investment they make with just one objective - to deliver the best possible investment returns.

 

Stephen Whittaker and Gregor Logan, our joint chief investment officers, Richard Pease, director of European equities, and Mark Beale, our deputy chief investment officer, are joined by some of the industry's most experienced personnel to form a senior investment team of strength and depth. These fund managers are distinguished by their excellent performance track records, talent and energy. Together they form one of the strongest investment teams in the industry, managing funds for individual investors and large institutions.

 

Managing risk

To complement its desire to foster its fund managers' freedom, New Star maintains a control framework that goes beyond merely satisfying regulatory requirements. The company has rigorous risk and control processes and has established a compliance and monitoring regime that is at the heart of its operating philosophy.

 

Central to this is a dedicated risk and performance measurement team independent from the front office. Its primary objective is to provide an effective investment risk framework independent from fund managers affording New Star an independent review of performance and investment risk for all portfolios. The risk function provides a statement of investment risk for all portfolios, incorporating objectives, benchmarks and risk tolerances.