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Investment Process

Progress builds every client portfolio consistent with the five interrelated steps in our investment process.

Discover New Talent

Given Progress’ role as a leading manager of early stage emerging managers, we benefit from a certain magnet effect as many new investment companies seek us out. We also actively look for new managers through diverse sourcing channels and prospecting strategies, including Internet research, networking with a variety of industry contacts and referrals.

Select Best-In-Class Emerging Firms

Our research process combines quantitative and qualitative analysis to narrow the universe of emerging managers. First, we score managers across a variety of discrete factors relating to performance, process, people and organizational stability. We then visit selected candidates from the top-scoring firms on our Research List, conducting extensive on-site research to better understand from a qualitative standpoint the rewards and risks uncovered through the quantitative scoring process.

Build Portfolios

Progress builds portfolios to meet explicit client guidelines, reflect our conviction in specific managers and control risk both at the individual manager level and at the portfolio level. We neutralize investment style exposures to ensure that portfolios are concentrated in our primary area of strength: manager selection. By systematically refreshing the Focus List of best-in-class candidates, we are ready to restructure portfolios as necessary. We restructure portfolios to ensure adherence to client goals and guidelines and to reflect evolving manager risk/reward profiles.

Monitor, Evaluate and Assist Managers

Progress’ quantitative scoring and qualitative due diligence process is systematic and extensive. We maintain updated quantitative scores on every manager, and we visit funded firms on-site at least once a year, with significant interim contact by telephone and in meetings at our offices. The process of manager assistance and the process of manager evaluation and monitoring support one another.

By providing ongoing assistance to the managers, Progress is able to anticipate and prevent any problems that may affect investment performance. Drawing from our own business experience, we also are in a better position to recognize when positive changes will affect performance, perhaps validating increased portfolio exposure to a manager.

Rebalance Portfolios

Portfolio rebalancing occurs through a constant process of quality control resulting in termination, reallocation and graduation. We conduct a formal review and fund rebalancing twice a year acting decisively to capture profits and limit losses. We want our managers to succeed. And when they do succeed and grow to mainstream status, we are ready to assist our clients in hiring these graduate managers directly. According to client research, one of the reasons some of our clients hire us is our ability to affect change more quickly than they can internally.

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