AIR Asset Management’s Investment Philosophy
Investors must choose skilled and experienced asset managers they can trust. At AIR Asset Management, we believe our investment philosophy, management, and expertise allow us to deliver for our investors. Here we explain how our team has successfully provided historical double-digit annual returns non-correlated to traditional asset classes through its multi-strategy approach to longevity-based investing.
TRANSCRIPT
Steven Luongo. Chief Investment Officer, AIR Asset Management
Jeff Black. Director of Portfolio Management, AIR Asset Management
Q: WHAT IS AIR ASSET MANAGEMENT’S INVESTMENT PHILOSOPHY
A: Our investment philosophy is focused on the following core items: Investments that achieve attractive total returns while minimizing volatility which provides equity-like returns with the lower risk of fixed-income markets. Secondly, identifying and managing risk at the individual investment level and the aggregate portfolio level. Third, leveraging our global network and strategic partners for superior sourcing of our investment opportunities. And lastly, maintaining a quantitative approach in our decision-making process.
Q: HOW DO YOU CONSTRUCT YOUR PORTFOLIOS?
A: We manage portfolios to deliver attractive returns while preserving capital for investors through our construction process. Our process focuses on building diversified portfolios across a range of risk factors to enhance the potential for total return. We invest in assets that allow flexibility to trade or hold for the longer term. Lastly, we maintain flexibilities within the portfolios to realign portfolio objectives when necessary.
Q: WHERE DO THESE ASSETS FIT IN A STRATEGIC ASSET ALLOCATION?
A: Our strategy seeks to counter the risks characteristic of more traditional investments, such as high volatility, by generating little to no correlation. Therefore, the combination of low correlation and attractive risk-adjusted return, makes the strategy complementary to traditional portfolio allocations. Investors typically place our strategy into a “general alternative” or “alternative fixed-income” bucket or even a “hedge fund allocation”. Due to its return and risk profile, we believe our strategy can work very well as a private credit allocation.
Q: WHAT MAKES AIR ASSET MANAGEMENT SUCCESSFUL?
We have extensive experience in this space. Our portfolio construction is heavily predicated on maximizing return and managing risk at both the individual asset and aggregate portfolio levels. The result is a return profile that produces little correlation to a broader strategic asset allocation.
STRONG INDUSTRY RELATIONSHIPS
Our strong network of business partners in the longevity space gives us superior access to unique market opportunities. This allows us to make opportunistic and timely investment decisions.
QUALITY INVESTOR RELATIONSHIPS
We continually strive to provide first-class service to our investors. Our internal standards and our commitment to transparency through our due diligence demonstrate our aptitude and capabilities in portfolio management and operations.
SOCIALLY RESPONSIBLE
Our strategy provides investors a way to positively impact senior citizens' lives by giving them access to needed funds through life settlements. As a signatory to the principles for responsible investment, we incorporate environmental, social, and governance considerations into our firm's culture. We are dedicated to achieving carbon neutrality, funding environmental and charitable causes, partnering with groups focused on inclusion and mentorship, and finally, we are committed to diversity within our firm.
Q: WHY AIR ASSET MANAGEMENT?
Every investment carries risk. That's why it's critical for investors to choose skilled and experienced asset managers they can trust. At AIR Asset Management, we look to build upon proven success by identifying new opportunities that deliver for our investors.