While Easterly Investment Partners (EIP) is always looking for pivots in the market, 2020 was a major twist. The firm drew on its hard-won experience through other market dislocations and remained focused on the long-term viability of each of its portfolio companies.
While Easterly Investment Partners (EIP) is always looking for pivots in the market, 2020 was a major twist. The firm drew on its hard-won experience through other market dislocations and remained focused on the long-term viability of each of its portfolio companies.
Jessica Bemer, CFA, Portfolio Manager at EIP, says: “Our fund’s alternative strategy allowed us to compliment and contain the volatility of the long side of the portfolio by writing options and selectively selling short.”
Over the last year, EIP has achieved its performance by “tenaciously holding to our process, remaining patient on ugly days, and constantly checking our assumptions,” says Anne Wickland, CFA, Portfolio Manager at EIP.
On a portfolio level, the firm focuses on challenging and confirming each investment thesis and looks to generate alpha and moderate risk. “When we lose conviction, we clean up the position and move on with a possible revisit down the road. We value the robust discussions that come from a diversity of opinion, but it’s equally important to practise humility and admit when we are wrong,” Wickland adds.
EIP continues to see many dislocations across the market, both at the sector level and among individual securities.
“In every market, if you look hard enough, you will find an idiosyncratic story that is undervalued,” Wickland says. “Companies are managed by humans, and humans make mistakes; that’s when we do our homework and find value over the long-term,” she adds.
EIP’s secret to success
So much of successful investing is managing risk, and the firm focuses as much on generating returns as on limiting risk and being tax efficient for clients.
Wickland says: “When we began to lead this fund team, our main goal was to mitigate risk through diversification, reduce beta, and wade into right-sized positions. Sometimes selling a winner is harder than adding to a loser; we are diligent about our price targets and upside. We are very proud of the work we have done on this portfolio.”
EIP values different voices and points of view, and as its teams have become more diverse, performance has improved significantly. “We are encouraged by the efforts on the financial industry to support managers that really stand behind ESG and DEI efforts,” Bemer says.
Growing and leading EIP
After many years of passive investing dominance, investors want above-market returns and they want shareholder voices to be heard. The firm believes that active management is the most effective tool to achieve these goals, as experienced portfolio managers are vocal and astute advocates for shareholders.
Earlier this year, EIP acquired Snow Capital Management, with Bemer, Wickland, and the rest of Snow’s investment team all moving to EIP. “We are excited to join an experienced group of colleagues who can open new doors for our sales and distribution efforts while our investment team continues to build on our successful track record,” says Wickland.
Jessica Bemer, CFA, Portfolio Manager, Senior Analyst, EIP
Jessica Bemer is a Portfolio Manager and Senior Analyst at Easterly Investment Partners. Bemer joined Snow Capital in 2006 as a Senior Analyst. In 2014, she was appointed a Portfolio Manager of the Snow Capital Long/Short Opportunity Fund. In 2016, she was appointed a Portfolio Manager of the Large Cap Value Strategy. Prior to joining the firm, she worked at Jennison Associates, where she was responsible for research coverage.
Anne Wickland, CFA, Portfolio Manager, Senior Analyst, EIP
Anne Wickland is a Portfolio Manager and Senior Analyst at Easterly Investment Partners. Wickland joined Snow Capital in 2006 as a Senior Analyst. In 2010, she was appointed a Portfolio Manager. Currently, she is a Portfolio Manager of the Long/Short Opportunity Fund, Large Cap Value and Equity Income Strategies. Prior to joining the firm, she worked at Prudential Equity Group, Credit Suisse and J.P. Morgan, where she was responsible for research coverage in the specialty hardlines retail, household and personal care sectors.
