Why Park Avenue Institutional Advisers?
The team that provides investment management services for Park Avenue Institutional Advisers consists of senior leaders in Guardian’s investment department, which manages Guardian’s $65 billion in assets, including portfolios based on both public and custom benchmarks that reflect the needs of specific businesses lines. We work closely with other teams in Guardian’s investment department that focus on a broad range of public fixed income and private asset classes, including private placements, private equity and real estate.
With an average of nearly 30 years of portfolio management experience, the team at PAIA has a long and successful track record at Guardian, as well as at PAIA and its predecessor, in a broad range of market conditions, asset classes and products. PAIA offers advisory and subadvisory services for mutual funds, custom portfolios, and serves as collateralized loan obligation programs.
We take an active, fundamental value approach to investment that starts with rigorous, independent research and integrates risk management into every step of the investment process. We begin with bottom-up research and analysis of every security and loan being considered for investment. We examine deal terms, collateral, and stress test results. We also make ongoing top-down assessments of global and domestic markets, economies and business cycles.
We are disciplined managers who gauge value relative to risk. The strength and depth of our research allows us to invest with conviction in select companies and assets that the team knows thoroughly, while rejecting potential investments that we believe offer inadequate compensation for risk. Our portfolio management team makes tactical adjustments and frequently reviews all portfolio components to determine if our investment thesis is intact.
Research is an ongoing 360-degree process led by a team of analysts who are sector specialists with an average of nearly 15 years of industry experience. Analysts examine the entire business and capital structure and interact in person with management and new issue underwriters. Never merely relying on ratings or quantitative models, they dig deeply into the details of businesses, and, where relevant, collateral, loan terms, and stress tests.
PAIA has a rigorous and comprehensive approach to investment selection that begins with a fundamental, bottom-up analysis of each portfolio candidate followed by an analysis of appropriateness for portfolio construction.
- The analyst team is composed of sector specialists with many years of experience following their respective industries
- Analysts look at the entire capital structure when evaluating an issuer
- Analyst interactions with management at meetings, conferences and company visits are an essential part of the initial and ongoing research process
- New issues are evaluated from the point of view of all participants, including the underwriter, issuer and management
Our team follows a meticulous, comprehensive approach to investment selection that begins with a fundamental, bottom-up analysis followed by an assessment of the potential investment’s impact on a given portfolio’s risk, diversification, and strategic characteristics. Once an investment is purchased for a portfolio, it remains under strict surveillance, with formal quarterly reviews. Investments that don’t meet expectations or no longer conform to our investment thesis are subject to a rigorous sell discipline.
The investment process is followed with strict discipline from analysis, to approval, to ongoing monitoring.
- Opportunities are reviewed and updated daily by all participants
- Relative value vs. peers and existing capital structure
- Industry characteristics
- Potential for improvement and vulnerabilities identified
- Impact on portfolio yield
- Impact on portfolio risk profile
Analyst / PM deep dive
- Cash flow modeling and asset coverage analysis
- Discussion with management team
- Review of credit agreements and collateral, if applicable
- Analyst forms expectations for the business and financial profile of the issuer
- Inclusion of review and terms into proprietary portal (earnings reviews, initial assessments, company updates)
- Analyst presents assessment and recommendation to portfolio managers
- Portfolio managers consider whether to proceed
- Purchases may require the consent of a majority of portfolio managers
Ongoing surveillance and compliance
- Portfolio is monitored for compliance
- Surveillance is continuous and reviews are done quarterly
- Investments not meeting analyst or market expectations may be assigned to a watch list
- In many cases, sales may be authorized by a single portfolio manager