Principals: Andrew Williams, chief investment officer and lead portfolio manager; Jim Lobb, managing director.
Style: International equity manager
AUM as of June 30: $2.86 billion
Three-year annualized performance:
Benchmark (MSCI EAFE) performance: -13.20%
Three-year alpha: 4.67
Andrew Wlliams and the international large-cap team at Glenmede Trust Co., Philadelphia, wanted to create a more entrepreneurial environment for themselves, so they launched an international boutique in partnership with Glenmede, recalled Jim Lobb. "Glenmede still owns 25% and nine professionals at Philadelphia International own the remaining 75%. … It works out well, because compensation is directly tied to results and gives us a tool to recruit new talent as we grow." The portfolio, which has a value bias, invests mainly in developed markets, with some emerging market exposure. It's currently overweighted in Europe and underweighted in Japan.
"We start by screening a universe of 6,000 names, which we reduce to 80 to 90 companies," Mr. Lobb said. The portfolio is predominantly large cap, although it does invest in some smaller-cap companies. Lately it has been overweighted in consumer discretionary, underweighted in financials and information technology and market-weighted in energy.
"We liked their process, which is both quantitative and qualitative," said Stephen Hagan, first vice president, Smith Barney Consulting Group, Wilmington, Del. "It allows them to identify undervalued opportunities. They tend to be invested across a market-cap range rather than just large cap."