Solutions // OCIOs and Funds of Funds

Invest with confidence.

Active managers can deliver your clients a powerful performance boost ― or cause the best-planned portfolio to fall short of its objectives. Use our technology to approach critical selection decisions with greater structure, conviction and accuracy.


Use our analytics seamlessly in conjunction with your other due diligence efforts.

Empirically Adds Value Along the Full Life-Cycle of an External Manager Relationship

Achieve better outcomes with objective, forward-looking metrics that describe, using plain language and elegant visualizations, exactly what you can expect from an allocation decision ― along with "what-if" scenarios and statistical confidence intervals.

Cut through the data overwhelm of performance ratios, research reports and ranking scorecards; we'll provide you with actionable predictive analytics and sound decision frameworks that drive the results you seek.

Clients served:

  • Outsourced CIO Organizations
  • Multi-Manager Funds
  • Pooled Vehicle Managers
  • Sub-Advised Fund Sponsors
  • Searches

    Identify the shortlisted manager with the highest probability of meeting the objectives of the search, if hired. Compare the skill level exhibited in widely disimilar funds on an equal basis.

  • Reviews

    Assess the drivers and quality of realized results given the manager's opportunity set. Estimate the likelihood that a switch would add value, and identify the optimal switching time.

  • Asset Allocation

    Determine whether active management is warranted for a given exposure, as compared to the Best Passive Alternative. Simulate a wide range of market environments to understand active risk.

Differentiate Your Offering

Set your firm apart from competitors and supercharge your internal analytical capabilities with our technology.

Improve Performance

Increase risk-adjusted returns from your external manager program by leveraging powerful decision support tools.

Boost Compliance

Document selection decisions with objective analytics supporting the rationale, prudence and cost-efficacy of your choices.

Outputs Tailored to Your Precise Needs

All of our work is customized and produced on demand for the client's exclusive benefit, incorporating the latest available information and the specific parameters of the request.

Ad-Hoc Engagements

Get targeted help with a specific mandate, review exercise, presentation or other internal project with no ongoing commitment.

Fixed Retainer

Request Empirically analytics for an unlimited number of searches, manager reviews and other projects in one or more asset classes.

Case Study
Problem

Reviewing monthly and quarterly reports from more than 30 external managers created a major drain on the investment team's internal resources. It was unclear what should be prioritized and whether outlier results represented noise or a structural break.

Solution

Empirically developed a system to streamline its monitoring process by providing a clean dashboard of up-to-date, directly comparable predictive analytics. This allows the team to focus its limited resources on deeper attention to managers with greater underperformance risk.

Case Study
Problem

An Outsourced CIO was facing repeated inquiries from clients regarding its use of active managers in certain equity and fixed income categories, given the existence of lower-cost alternatives. The OCIO wanted to objectively quantify the value-added of its recommended managers in these categories.

Solution

Empirically simulated each investment product and its Best Passive Alternative using its EPSE and Replicator capabilities, and delivered a report which included probability distributions of the net-of-fees value of active versus passive management in each area over relevant future periods.

Case Study
Problem

A large institutional investor planned to make several new private equity investments. The investor wanted a stronger framework for rating the funds under consideration than simply reviewing the IRRs of the managers' past funds against peer groups of the same vintages.

Solution

Empirically constructed bespoke custom benchmarks for each fund previously run by the managers that had cleared initial due diligence, and used them to quantify skill. Empirically also delivered a tool to facilitate consistent, integrative decision making about private equity investments going forward.

Case Study
Problem

A private foundation was considering terminating 2 underperforming managers and replacing them with smart beta products. However, the trustees were concerned about the risk of "locking in" the losses, and then underperforming again if the managers rebounded after being terminated.

Solution

Using its StateSpace capability, Empirically concluded that the two strategies were unlikely to rebound on a relative basis in the short term, resulting in a recommendation to switch immediately. Using its Premortem capability, Empirically quantified the probability that such an action would result in regret (underperformance) vs. holding.

Case Study
Problem

A superannuation fund wanted to provide unified reporting and tracking of its ESG exposures and risks. Writing, distributing and aggregating endless questionnaires, and dealing with missing and non-comparable data, had become a major headache for the team.

Solution

Empirically's RealESG capability provides the fund with objective quantitative measures of the actual (as opposed to stated) ESG exposures and behaviors of its active managers, updated quarterly with minimal time overhead. Plus, the tool estimates funds' proneness to future ESG controversies.

Case Study
Problem

The CIO of an insurance company's discretionary portfolio was considering shifting more assets into smart beta products. He wanted to quantify the probability that the proposed switch would add value over the next 2, 5 and 10 years.

Solution

Empirically estimated predictive models for the portfolio's current manager slate and the proposed smart beta allocation and simulated them over a range of potential market conditions. The results indicated a strong business case for the move.

previous arrowprevious arrow
next arrownext arrow
Slider

Evidence-Based Due Diligence Tools

Guided by the Empirically Compass, we can help ensure you make fully-informed choices that have the highest probability of meeting your objectives.

Start with Blocks

Unlike a traditional consulting firm, Empirically's analytical capabilities are organized into self-contained Blocks, each of which delivers a reliable and validated answer to an important due diligence question.

Build Workflows

Choose from our pre-designed Workflows or build your own custom ones to fit any project from collections of Blocks. Example Workflows include an Annual Equity Manager Review, an ESG Analysis, and a Long-Short Hedge Fund Search.

Modify or Repeat On Demand

Most Workflows can be delivered in as little as 3 working days. Expert review and commentary is included, and we're also available to present the results by phone, video conference or in person.

ILLUSTRATIVE WORKFLOW

Conducting an Optimal Manager Search with Empirically

Use Cases

Select an asset class to explore how our technology can support your search, evaluation and oversight efforts.

Get More From Active Management

Let's discuss how you can begin leveraging Empirically's capabilities to achieve better portfolio outcomes and act with greater conviction.

BOOK an introductory call

Featured Insights for Outsourced Fiduciaries and Multi-Manager Funds