1. generating
Investment Alpha & Social Alpha
simultaneously
Chris Campbell, Partner
WhiteStone
Global Par tner s
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2. WhiteStone
Represents high‐performing investment strategies
from socially compelling firms.

Promotes skill‐based engagements and equal opportuni>es for
emerging (bou>que), minority‐owned, woman‐owned,
and socially responsible investment managers.

Recognizes that Opportunity ≠ Skill
(i.e. virtue may be its own reward, yet returns pay the bills)
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3. Making Your Investments Stronger, Your World BeOer
Investment Alpha + Social Alpha
Defining Alpha (α)
Investment Alpha (α): extraordinary investment returns
(where “ordinary” returns are those the market already provides)
Social Alpha (α): extraordinary social returns
(where “ordinary” is a passive, non‐resistance to social progress)
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4. WhiteStone’s Mandate:
Iden:fy and represent socially compelling firms within a
“high alpha universe”
High Alpha
Emerging
Woman‐Owned
Minority‐
Owned
Socially
Responsible
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5. The Landscape For Hiring
Emerging & Socially Compelling Managers
Skilled smaller businesses, minority/women‐owned mangers
too oYen go unseen, unheard, and un‐hired.
Investment performance is a Non‐Nego7able
Market with a Skill‐First Focus
(i.e. we don’t look for “sympathy votes”)
Challenge: the G‐A‐P between Skill…Opportunity
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6. Big or Bou>que Managers? Where are the assets?
Manager
Popula>on 82%
Bou>que
Managers
Mega Managers ($50B or greater)
• Make up 2% of Popula>on (82 firms)
• Control nearly 2/3 of total assets 16%
Other
2% Mega
Managers
Bou7que Managers ($2B or less)
• 8 of every 10 managers
• Manage 8% of total assets
AUM $ 62% of $
8% of
$ 30% of $
Evolu:on Revolu:on 2008: A Profile of the Investment Advisor Profession, IAA & NRS, 2008
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7. Big or Bou>que Managers? Where’s the Skill?
“Investors who insist on only hiring large firms probably are not protec:ng themselves,
and possibly missing out on most of the best talent in the marketplace.”
‐Northern Trust Global Advisors*
U.S. Equity Managers*
Annualized Performance (2000‐2005)
Performance Emerging Mgrs Mega Mgrs
Percen:le <$2 billion AUM >$80 billion AUM
5th 15.37% 11.38%
25th 8.51% 6.99%
50th 3.69% 1.54%
75th ‐0.36% ‐2.88%
95th ‐6.5% ‐8.30%
The Big Q: Why not hire skill?
*NTGA Research Study:” Can Elephants Dance?”, 2005. 7

8. Summary
Let’s keep it simple…
As investors, most of us (ins>tu>onal, individual)
invest to either grow or protect our money.
Skill is what gets the job done.
While there are many important considera>ons in hiring an investment manager,
SKILL should be at the top of the list.
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9. 1) Realize investment skill doesn’t have a size/gender/age bias.
Some of the most skilled talent is “flying under the radar”.
2) Confirm skill.
Does this bou>que/minority/woman–owned investment manager
generate investment alpha?
3) Give this skill an opportunity, reap the reward, and send a message.
Engaging a high‐performing investment strategy from a socially compelling firm
simultaneously generates investment alpha and social alpha.
Take some action. Contact WhiteStone.
Chris Campbell, Partner
937 609 8213  chris@whitestoneglobal.com
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