Multi-Asset Strategist Manager of 2022: SSI Investment Management
“The fixed income portion of SSI’s Flexible Allocation Portfolios outperformed the benchmark and generated positive returns in 2021. SSI’s active approach on the fixed income side resulted in exposure to several differentiated asset classes and significantly less interest rate sensitivity — duration — than the Bloomberg Aggregate Bond Index,” he said.
SSI’s flagship moderate portfolio returned 17.17% last year, landing in the 11th percentile of its peer group, as represented by the Morningstar Allocation — 50% to 70% Equity category, which includes 569 portfolios, Raguse said. The moderate portfolio’s benchmark, 60% S&P 500 / 40% Bloomberg U.S. Aggregate Index, returned 15.86% in 2021, while the Morningstar peer category returned 13.06%, he noted.
This differentiated positioning on the fixed income side added to alpha, Raguse said. The team replaced portions of traditional fixed income, such as U.S. Treasuries and investment-grade bonds, with the First Trust Senior Loan ETF, which returned 3.9% in 2021, and the FPE, or First Trust Preferred Securities and Income ETF, a floating preferred investment, produced a 5.2% return last year, Raguse explained.
He described the team as constrained tactical managers: “And by that, I mean, we’re not trying to make calls on market bottoms or market tops. It’s a very disciplined process that adjusts systematically over time.
“So what we’re doing is looking at the quantitative output, taking that output as a team fundamental and evaluating it, and then adjusting the portfolio systematically over time. And as the environment changes, if there’s substantial changes in the environment, there will be big changes in the portfolio. But it’s a predictable, consistent process that can be repeated over time,” Raguse added.
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Ken Raguse
Title: Manager; Years with firm: 27; Years in financial services: 30; Investment/asset class: Multi Asset Strategist; Asset management firm: SSI Investment Management; Year firm founded: 1973; Number of employees: 30; AUM as of April 30, 2022: $2.3 billion
