Martha K. Pomerantz, investment principal and head of the firm's investment committee, says the firm has been increasingly doing more of its own research, as well as utilizing more independent research. "We'd always used street research, but we, like others, recognize that their perspectives are limited," she says. "It's often a playback of what companies are saying, as opposed to a creative view."
As for the firm's broad investment philosophy, the principals at Lowry Hill describe it as not strictly principal preservation, but also not overly conservative. They all agree, however, that they're not suited for "hot money" investors.
"If someone is really high risk," Steiner says, "we're not going to fit very well, because what will end up happening is our investment strategies won't meet their return requirement."
The firm believes its investment returns have been right in line with client expectations-slightly beating out the market while managing risk. The firm's large-cap portfolio has a ten-year annualized return of 13.4%, compared with 11.3% for the S&P 500, says Steiner. For small cap, it says the ten-year return has been 14.7%, compared with 10.1% for the Russell 2000.
In the end, however, Steiner feels it is the client relationship, and not the baseline investment performance, that has been at the root of the firm's success. "The first thing we try to do is, we try to understand them as people," he says. "At the end of the day, what they value and what their values are, are going to have an impact on how they want their money managed."