C|A Capital Management is Cambridge Associates’ business unit dedicated to serving as the outsourced investment office for our institutional clients.
C|A Capital Management offers a turn-key discretionary investment management solution that is executed with the people, processes, and resources of a dedicated in-house investment office. Each client is supported by a CIO who leads a full investment team and operations support staff. These robust teams manage portfolios to optimize performance within guidelines set by the client.
Your needs are our focus. We offer investment solutions, not investment products. And we never receive any financial incentives from investment management firms to invest in their products. The decisions we make for your portfolio are based on what’s best for you, not on what profits us.
Your portfolio reflects your institution. We believe that your investment portfolio must reflect the specific operating realities, risk tolerance, return objectives, and mission and values of your institution. We construct truly customized portfolios at the manager level to meet your unique needs. Model portfolios and commingled asset-class pools simply cannot accomplish this level of customization.
Portfolio administration is simple. Although constructing a sophisticated custom investment portfolio is complex, our delivery to you is not. We can create a unique and custom “fund-of-one” to relieve your administrative burden. Our operations team provides you with one audited financial statement and one K-1, and the portfolio appears as one line item on your balance sheet.
You own your assets. Our custom fund-of-one structure means you always remain the beneficial owner of the underlying manager relationships in your fund. This means your portfolio remains intact even if you seek another investment management option. Other outsourcing options often use pooled vehicles or funds-of-funds that may require you to liquidate upon termination.
Your investment team is deeply resourced. Our teams function as nimble boutique investment offices. But they are supported by an extensive on-the-ground global research network of more than 200 professionals. Our research team scours the globe to find best-in-class ideas across asset classes and identify changes in relative asset class valuations. Few outsourced CIOs have access to such robust resources.
Investment Committees are facing more challenges than ever. Increased scrutiny of portfolio performance, growing concerns about reputational risk, and challenges of navigating changing regulations have led to “fiduciary fatigue.”
Investment Committees want to maximize their time. Outsourcing allows Committees to focus on strategic portfolio issues and entrust day-to-day decision making to seasoned professionals who can optimize portfolio performance based on their stated strategy.
Portfolios need real-time management. Committees understand that complex portfolios need constant oversight from experts who can identify investment risks and capitalize on tactical opportunities. They also need dedicated administrative support to mitigate execution risk and support operations. Outsourcing allows Committees to delegate the timely implementation and administration decisions to a professional team that is held accountable for the portfolio's results.
Complex investments require specialized skills. Even highly sophisticated Committees who have experience with alternative asset classes recognize that such portfolios can't be overseen with limited internal resources.
Staff can be difficult to attract and retain. Building and maintaining an in-house investment office can be challenging. An outsourced investment office provides stability to the investment management process in a cost-effective way.
Bruce Myers and Margaret Chen, co-directors of C|A Capital Management, discuss challenges Investment Committees face that have contributed to the demand for outsourcing services.