KLITZBERG FUND SOLUTIONS, INC.
BOCA RATON, FLORIDA

Klitzberg Fund Solutions was created more than 10 years ago to address issues faced by fund groups underforming across different strategies and asset classes. These issues can deal with internal managers or external sub-advisors that have not been generating top quartile performance. Our belief is that fund shareholders should always earn the highest possible return from the very best investment managers. Fund sponsors who fail to meet their shareholders’ expectations face the consequences, namely, fund redemptions, damaged reputations, and an uncertain business outlook. At Klitzberg Fund Solutions, Rich and Steve have assisted fund sponsors structure sub-advisory relationships with investment managers unknown to most in the industry. We have a complimentary combination of skills and outreach that allow us to source talented boutique managers that can turn around underperforming funds, stabilize assets under management, and benefit fund shareholders. We refer to this skill set as a “conduit to talent.” Boutique managers are a resource for your fund business We speak with boutiques almost daily. We meet them at conferences, they visit our offices in Princeton and Boca Raton, and we receive their presentations through emails. These firms typically have a small specialized team of investment professionals who focus on only one or two investment strategies. They are entrepreneurs who take pride in building their business through performance and referrals. Boutiques can make decisions quickly and do not need to go through investment management committees as do larger asset managers. This flexibility and focus means they frequently impose constraints on new business and new hires to assure that their clients are catered to and not crowded out. Firms we know include traditional long-only managers, multi-asset class investment advisors, and alternative investment firms. These firms cover a wide range of styles and investment strategies that tend to be timely, effective, and profitable. Boutiques we work with typically use both qualitative and quantitative disciplines. We have successfully assisted in the completion of nearly $3 billion in mandates across multiple asset classes for fund groups in the united states and internationally. We provide them with multiple options to source managers. Klitzberg Fund Solutions There has been an ongoing debate for many years as to whether larger or smaller investment managers are better suited to manage institutional portfolios. Supporters of larger firms mention their reputations, proven history, and collective abilities to manage billions in assets. Advocates for smaller managers refer to entrepreneurial skills, independence, and flexibility. Boutiques assert that behemoths are too large and track their underlying indices too closely which leads to performance issues. Historically, we have noted that fiduciaries of institutional investors and mutual funds have resisted hiring smaller managers because of the supposed “risks” inherent in such a decision. Reasons may include: smaller firms lack sufficient skilled staff to manage large mandates; our consultant has no knowledge of them; key man risk; and inability to manage multiple strategies. However, they rarely compare performance. We have found academic studies and industry research that conclude smaller managers outperform larger managers and generally do so through bull markets and bear markets and across all market sectors. This leads to the question of how large institutions can obtain superior investment performance without the supposed positive attributes of boutique firms? Klitzberg Fund Solutions believes the answer is to hire talented boutique managers, which is precisely the service and research capabilities we are providing. And we have been performing this valuable role for more than 10 years and have successfully assisted in nearly $3 billion in completed mandates.