Investment Approach

An Investment Culture Built on Active, Risk-Disciplined Strategies

At Neuberger Berman, we have been actively observing and investing in the global markets for over seven decades. The strength of our investment culture derives in part from our emphasis on original thinking and fundamental research, complemented by our embrace of a diversity of investment strategies to help our clients achieve their unique investment objectives. From complex, multi-asset solutions to single strategies, our investment approach is anchored by a disciplined, risk-focused process. Risk management is now and has always been central to our investment culture and our commitment to our clients. It helps explain the longevity of thousands and thousands of relationships.

Joseph V. Amato, President and Chief Investment Officer

 

Independent Teams in a Pure Investment Culture

Time and space -- from our founding in 1939 through today and into the future, we place priority emphasis on allowing our investors the time and space to do their work. The firm is built and managed so that investors are able to invest. What we have in common is a passion for research, a desire to uncover ideas and opportunities and a bias toward engaging in dialogue, debate and discussion about investments for our client portfolios. We engage vigorously with the firms we seek to own. We meet with them. We ask questions and listen carefully. We are a destination for hundreds of publically traded businesses who visit our offices to tell their story. Our research is proprietary conducted and disseminated for the exclusive use of our 42 portfolio management teams for the benefits of our clients. In 2013, we hosted over 1,800 meetings with companies in our offices alone.

 

We are Investors

This simple sentence states clearly our identity and our focus. We manage client assets only. That’s our business and our business model. Our mission is to invest to meet our clients’ unique objectives. This commitment translates naturally into independent, thoughtful investment decisions. From investment grade fixed income to sovereign debt, from small cap value stocks to private equity, our approach is hands-on, bottom-up research. Managing assets across equities, fixed income and alternatives gives the firm and our clients a unique ability to develop solutions that may defy conventions. We are a single firm, able to work across asset classes to build solutions that meet our clients’ specific requirements -- from bespoke institutional mandates to highly customized private client account solutions.

 

Broad and Flexible Coverage of the Investment Spectrum

We manage assets across all asset classes. Our investment approaches range from long/short and hedge strategies to long-only equity portfolios. The firm remains relevant to our clients because we remain committed to finding opportunities both traditional and non-traditional in today’s marketplace. Our experienced managers and our long-term outlook help define and motivate our approach and our decision-making.

 

Managing Risk Is at the Core of Our Philosophy

Managing risk is a central function in our culture at Neuberger Berman, famously articulated by our eponymous founder as the mission of ‘preserving our clients’ hard-earned capital.’ The firm employs a rigorous, well-defined risk management framework staffed by dedicated, operational risk professionals, separate from our portfolio managers. Their role, as directed by our Investment Risk and Operational Risk Committees, is to identify and mitigate potential risks to our clients, our reputation and our financial well-being. Responsible for the oversight of new and existing products, as well as the firm’s operations, our risk professionals are another factor that gives our portfolio managers the freedom to operate with significant independence.