Investment Strategy Due Diligence
July 16, 2026
The Source of Returns
A strong track record starts with a repeatable investment process and even the most experienced team needs a clearly defined strategy. Advisors should understand not only what a manager invests in, but also how they consistently generate returns.
A disciplined review looks beyond performance to determine whether the strategy is differentiated, repeatable, and built to withstand changing market environments. A strategy that cannot be clearly explained is a strategy that should be questioned.
Consider these key questions:
- Clarity of edge. Where does the manager actually generate alpha, sourcing, structuring, operational improvement, sector specialization? Is the edge durable, or a function of recent market conditions?
- Repeatability. Has the strategy been executed consistently across vintages, or do prior results reflect a small number of outsized outcomes?
- Process discipline. How are deals sourced, screened, underwritten, and approved? Is there a clear, documented process and does it match what the team describes in conversation?
- Risk management. How does the manager define and measure risk inside the portfolio? How is downside protection built into underwriting, not just into post-mortems?
- Capital deployment plan. How long will deployment realistically take? What does pacing look like across the investment period, and what is the J-curve profile?
