Providing institutions extended capacity and reach
Adding capacity to your team in the areas of portfolio construction, sourcing, diligence & monitoring
OVERVIEW
Supporting institutional fiduciary obligations. Local expansion of your team capacity.
StellarThree LLC, (S3) is a boutique firm created for asset owners and advisors. Based in New York, S3 can give your team a colleague and resource experienced with policy; recognizing the central role accurate translation of fiduciary obligations play into formulating appropriate investment objectives; ultimately S3 supports your work in the areas of portfolio construction, sourcing, diligence, and monitoring of investments.
S3 is and intends to remain an agile and focused boutique practice. It’s proposition is most powerful for those institutions and investors that seek an on-call team member for enhanced sourcing, monitoring and diligence, with a NYC base and North American reach.
Challenging dogma is central to achieve decoupling from the tail risks that come with investor clustering behaviors, and it is the core tenant for bringing a fresh perspective to portfolio construction, diligence or reporting challenges.
BACKGROUND
The founding partner, Anders Dahlstrom began his professional finance career in NYC in the late 1990’s working for Venture Capital firm Endpoint Biocapital, Sdn Bhd, Nordic Bank’s, where he was active in institutional client services, as client executive for SEB NY with responsibility for US financial institutions. He was subsequently head of research and CO-CIO for the VCGIM Global Pension fund. At VCGIM, Mr. Dahlstrom led the work on alternatives and portfolio construction until the start of S3 mid 2019
Over the years, meeting investment related objectives from both a buy' and sell side' vantage point has formed a view that the best framework for long term investment success is created by remaining humble and in a continuous learning mode, while seeking to challenge higher order assumptions around investment management S3 thus assists in the progression of methodology in addition to execution of specific sourcing and monitoring objectives.
Current focus areas include quantifying and reducing GDP and cyclical over exposure in long duration asset selection, constraints based portfolio construction and efforts to contribute improved left tail diversification across asset classes.
SERVICES
Sourcing:
Includes the work with internal client teams to identify accretive risk sources unique for each institution, and mapping these criteria against differentiated arbitrage opportunities and managers. It entails the evaluation of intangible & tangible drivers towards shaping a sourcing process set to select suitable components for institutional portfolios. The scope is generally to accomplishing this outcome while minimizing the buildup of causal left tail concentrations in the total portfolio, a craft that draws on 20 years of experience, network and genuine interest for the subject matter.
Investment Diligence:
Leveraging a local presence to contribute capacity to execute this objectives based task with detailed diligence. Match criteria specific to a given institution’s objectives, seeking to further sure up investments vs alternatives. Contribute insights to identify investment attributes that contribute uncompensated risks and raise the competitive pressure on individual managers in the pipeline. Ultimately contributing to a more robust investment due diligence.
Monitoring:
Frequent interaction via on- and off-site meetings with core staff at managers and their peers to enhance the transparency and gain more pertinent insights. Knowing which stakeholder might be considering to transition out from a firm, or which dynamics prevail that may impact the risk or stability is all but impossible without frequency of interaction. S3 offers continuous follow up and monitoring in between and in preparation for the institutions direct visits.
Portfolio Construction:
Portfolio construction with a tail focus is a core building block towards more deliberate sourcing. NYC is hardly a shield against consensus behavior, but one needs to know where the biases are to avoid sharing them unintentionally.
Often a very internal process, portfolio construction sometimes has to be, but stress-testing the logic is sound practice. The bias from S3 is to use portfolio sleeve-specific criteria to shape exposures. “The treasury or short dated portfolio” may benefit greatly from regression math, but to decorrelate higher order risk factor concentrations, factoring in Private Equity and infrastructure contributions to GDP, cyclicality, stock market and price multiple factor risks is crucial practice. The dicipline of knowing what tails are deliberate and which metrics are relevant for a given portfolio, adds more pertinent sourcing and ongoing monitoring.
Contributing to your team capacity as a colleague, seeking to evolve and iterate by learning together.
Stellar Three, LLC
Anders Dahlstrom
34 Plymouth Street
Montclair, NJ 07042
U.S.A.
Phone: + 1 (201) 289 7381