Sire strives to produce long term investment results from a select group of research-driven long-short equity managers. We try to construct our partnerships in a framework of capital preservation, risk management, and strong returns over the long term.
- Established in 1991 by Judson P. Reis and Mark R. Eaker. Mr. Reis spent the first 22 years of his career at Morgan Stanley most of them as a Managing Director in the corporate finance, capital markets and merger and acquisition departments. From June 1988 through December 1990 he was head of investment banking in North America for Kleinwort Benson, the London based merchant bank. In addition, from August 1987 to 2008, Mr. Reis was a visiting professor at The Darden School, the graduate business school of The University of Virginia. Mr. Reis met Mr. Eaker at Darden, where Mr. Eaker, was a tenured full professor of finance.
- Sire believes a long term investment horizon and "time arbitrage" are meaningful advantages in achieving superior investment performance.
- Sire enjoys a long standing relationship with its client base.
- Our interests are aligned with our Partners. A substantial portion of the principals' collective net worth is invested in the Sire partnerships. We are the largest investor in aggregate across both Sire partnerships.
- The members of the Investment Committee have extensive investment experience in different areas of finance: investment banking, academia and investment management including over 25 years experience investing in hedge funds. We believe this gives Sire a unique advantage in interviewing and analyzing managers.
Sire’s Investment Philosophy is a reflection of our collective academic and professional experiences and our beliefs that:
- Investing over a long term time horizon produces superior results;
- Carefully implemented equity long/short strategies can generate more alpha over an investment cycle than other hedged strategies;
- Successful investment managers combine in-depth, fundamental research with the judgment to adjust to changing market conditions;
- Investment managers profit from intelligently taking risk; and,
- Understanding and managing risk is the key to long term success.
Because each of our partnerships have a number of managers, we prefer our managers to have concentrated portfolios. Put another way, we think a manager's tenth best position is more likely to produce results than his seventy-fifth position.
Sire primarily attempts to reduce risk in two ways: diversification and hedging. We seek to ensure that each Sire partnership is invested with underlying managers who have different investment styles/philosophies and different areas of primary expertise with the goal of reducing risk that might be associated with any one manager.
While several of our managers may be highly concentrated, we believe that the Sire partnerships are appropriately diversified due to the range of managers we utilize. We analyze the correlations among our managers and seek to "look through" and aggregate the larger positions of the underlying portfolios to make sure we are not naive in our belief.
With a few exceptions, the underlying managers in the Sire partnerships are hedged through short exposure to the market. Overall, our partnerships have a clear and meaningful bias toward net long market exposure.