A key feature of JANA’s investment approach is our preparedness to move away from the long-term strategic asset allocation when we believe that markets have deviated from fair values and after taking account of fundamentals and sentiment factors. These tilts tend to be few in number but at times may be significant in magnitude. JANA is a strong proponent of active management of asset allocation, particularly to manage downside risk.
JANA is rigorous about determining the optimal asset allocation for a client’s portfolio. Our asset allocation process draws on the expertise and knowledge of our entire team of investment professionals. In this way, clients benefit from the collaborative knowledge of a large investment team.
We determine a client’s core Strategic Asset Allocation (SAA) by traditional methods of adopting long-term assumptions of risk and return and correlations in the context of the objectives and risk tolerance of the client.
We believe that active management of asset allocation can enhance returns and reduce risk, so we are prepared to recommend and adopt substantial deviations from the core SAA. Positions are developed and implemented progressively through a disciplined process. Each asset class is re-assessed on the basis of valuations, fundamentals and sentiment, on an on-going basis.