Our pre-trade analysis allows us to develop a fully customized execution strategy. Our transition management team addresses our clients’ unique transition strategy requirements by performing extensive research into liquidity, volatility, market capitalization, sector movements, bid-ask spreads, and currency and cash flow factors to determine the most appropriate trading strategy.
We view managing the opportunity cost as the key element to a successful transition. While developing appropriate trading strategies to minimize transaction costs (i.e., commission, bid/ask spreads and market impact) is important, it is the costs that arise from the difference in returns between the actual portfolio and the target portfolio that will have the greatest impact on implementation shortfall. If this risk is not properly managed, the opportunity cost will far outweigh transaction costs.