UNCOVERING A MONEY MANAGER'S COMPETITIVE EDGE

Uncovering the “Edge”

As a young boy in Italy, Kobe Bryant didn't just dream of playing in the NBA—he set his sights on becoming the greatest player of all time. To reach this pinnacle, Kobe knew he needed an edge, something that would make him unstoppable in the fiercely competitive world of professional sports. For Kobe, that edge was his relentless work ethic, a trait that became the stuff of legend.

During the 2008 Olympic Basketball training camp in Las Vegas, a team of NBA superstars decided to enjoy a night out before their grueling sessions began. As they returned to their hotel in the early morning hours, they were stunned to see Kobe heading out—to the gym. While they were winding down, Kobe was gearing up, ready to outwork the competition before the day had even begun. This unwavering dedication powered Kobe to five NBA championships and secured his place among the greatest players in history.

In the world of investing, much like in the NBA, a manager needs more than just a sound strategy; success hinges on finding that edge.

As we evaluate investment managers, we dig deep to uncover the building blocks of their success. We scrutinize the consistency of their processes over time and assess whether their performance aligns with their stated philosophy. Our focus is on identifying this edge, whether it manifests as a tangible asset, an intangible quality, or amalgamation of the two. We seek to understand how it sets them apart from their peers and if it equips them with the characteristics necessary for long-term investment success.

Just as Kobe’s work ethic distinguished him on the court, a manager’s edge is what will determine their success in the market. The question is: who has the edge, and how will they maintain it?

The Critical Factors That Turn Good Strategies into Great Outcomes

• A manager's edge can be tangible, like pioneering expertise in a burgeoning sector such as digital infrastructure or real estate. These tangible edges, while occasionally short-lived, offer lucrative advantages when applied with skill and foresight. However, they come with greater perceived risk, as they require early action, often without a long track record of success.
• Intangible edges, on the other hand, dwell in a manager’s philosophy, culture, team dynamics, and integrity. These qualities are harder to quantify but become clearer with time. They might be what keeps a high-performing team intact, drive a unique approach to risk, or ensure the manager consistently acts as a responsible fiduciary.
• It’s crucial to distinguish between a genuine edge and mere deviation. We often encounter managers in private equity pitching obscure geographies or niches as their edge. However, obscurity doesn’t automatically confer advantage. More often, these managers are 'small fish in a shallow pond,' unlikely to achieve critical mass.

At Crewcial, we invest with purpose, aiming for top-quartile performance while embracing your mission. While many claim this goal, our edge lies in our execution and a repeatable, disciplined approach:

• Expert Advice: Our fundamentals-focused research seeks out the best investment opportunities available.
• Variant Perception: We know that different perspectives lead to different outcomes, and beating the market requires thinking differently than the average investor.
• Non-Profit Focus: Over 90% of our clients are endowments, foundations, and other non-profits, allowing us to specialize in the unique challenges and opportunities of these organizations.

Our true edge lies in our investment team—a diverse group that embodies experience, expertise, and unwavering dedication to our clients’ success. With tens of thousands of collective hours spent dissecting strategies and meeting with managers, our team has developed a finely tuned ability to identify the subtle yet critical factors that signal a manager’s potential for sustained excellence.

We don’t just evaluate managers; we build deep, enduring relationships with those we believe in, supporting them through the inevitable ups and downs of the market. Our patience, conviction, and deep understanding across verticals help ensure that our clients’ investments remain on course toward their long-term goals. Just as Kobe Bryant's relentless work ethic propelled him to greatness, Crewcial’s investment team leverages its unwavering dedication and expertise to secure sustainable success for our clients—because in both sports and investing, the keenest edge lies in a passionate commitment to excellence.