Chicago Equity Partners

About

About

Chicago Equity Partners is a multi-asset class investment firm that delivers fundamentally oriented investment solutions to sophisticated institutional investors. The Firm employs a time-tested investment process in the management of equity and fixed income portfolios that takes into account client expectations of risk and return.

AMG Funds From This Firm

MBEYX

Chicago Equity Partners Balanced Fund

The Fund provides broad exposure to U.S. stocks and bonds, which can serve as the foundation of an investment program.

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CESIX

Chicago Equity Partners Small Cap Value Fund

The Fund seeks long-term capital appreciation by identifying market inefficiencies in the prices of U.S. small cap companies.

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Approach & Philosophy

Philosophy and Approach

Our Philosophy

The investment philosophy at Chicago Equity Partners (CEP) is based on well-established financial and behavioral theory. CEP generates alpha by exploiting market inefficiencies through a systematic, risk-controlled process. This investment philosophy is built upon three core beliefs for equity and fixed income markets:

Equities

  • Equity markets are mostly efficient. Due to fundamental and behavioral biases, however, market inefficiencies persist that can be exploited through a systematic, research-intensive process
  • Changes in fundamentals drive stock prices. Analyzing an intersection of earnings, valuation, growth, balance sheet and other relevant metrics creates the best opportunity for identifying and exploiting market inefficiencies
  • Structured analysis plus disciplined decision making equals success. The best means of generating alpha combines systematic analysis of fundamental variables with rigorous implementation by a team of seasoned industry experts, creating a process that is transparent, explainable and scalable

Fixed Income

  • Yield wins over time, but not all the time. CEP's research based approach allows the firm to add value through sector allocation by identifying when the investor will be appropriately compensated for taking credit risk
  • Changes in fundamentals drive security selection returns. The analysis of forward-looking measures of credit quality helps CEP to identify companies that will outperform and avoid those that will underperform
  • Risk management is critical to success. Minimizing downside risk and avoiding permanent loss of principal are primary goals

Our Approach

Chicago Equity Partners strives to create stable and repeatable investment processes. The firm's investment process involves three key steps:

  • Alpha Generation: Combine sophisticated quantitative methods with a qualitative implementation plan to distinguish winners from losers
  • Portfolio Construction: Optimize the portfolio as a team, neutralizing size, industry and sector exposures while emphasizing security selection
  • Risk Management: Utilize a proprietary risk model with a disciplined approach to taking only those risks for which CEP believes the investor will be appropriately compensated
  • Top-down: Sector and quality decisions incorporate fundamental, valuation and momentum/sentiment market conditions
  • Bottom-up: Security and industry selection research combines quantitative equity-based inputs with qualitative insight from analysts
  • Downside Protection: Risk-budgeting framework measures magnitude of each excess return strategy on a forward-looking basis, while attribution provides real-time feedback

Fund Managers

Fund Managers

Robert H. Kramer, CFA

Robert H. Kramer, CFA

Managing Director and Portfolio Manager at Chicago Equity Partners

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Michael J. Budd

Michael J. Budd

Managing Director and Portfolio Manager at Chicago Equity Partners

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Patricia A. Halper, CFA

Patricia A. Halper, CFA

Managing Director and Portfolio Manager at Chicago Equity Partners

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Curt A. Mitchell, CFA

Curt A. Mitchell, CFA

Chief Investment Officer Fixed Income and Portfolio Manager at Chicago Equity Partners

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William C. Murray

William C. Murray

Director and Portfolio Manager at Chicago Equity Partners

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Insights

Insights

Shielding Retirement Assets From Taxes

The impact for retirees and their heirs
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Laying a Bigger Nest Egg

The current investment environment makes retirement nest eggs less effective than many retirees had hoped. Understanding potential retirement income shortfalls is a critical first step. The hard part–developing a plan to avoid that shortfall–comes next.
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The Phases of Retirement: Updating Your Finances for Your Changing Lifestyle

As people live longer and healthier lives, retirement income and distribution strategies require a flexible approach that provides for changing needs over time.
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