Security Selection   |   Manager Selection   |   Sell Discipline   |   Resources & Archive  

Manager Selection Process


In order to complement our core investment solutions, the research process at Godsey & Gibb Associates--Investment Counsel provides for investment in a comprehensive subset of third-party mutual funds and managed accounts. These investment options span the asset allocation spectrum and provide selections for all types of investors, from the most conservative (capital preservation) to aggressive growth, and include options for individuals, institutions, taxable and tax-exempt investors.

Manager selections at Godsey & Gibb are made based on the same disciplined investment process that drives overall security selection at the firm. The due diligence process seeks to identify “best in class” outside managers that have the ability to generate a high-level of risk-adjusted return. Emphasis is placed on long-tenured portfolio managers, with competitive performance histories across up and down markets, reasonable levels of portfolio turnover, and competitive expenses.

Please feel to contact us for more information regarding how our approved list of mutual fund and managed accounts may help to meet your investment goals and objectives.

Please click here for additional information on the Manager Selection Process.

The Sharpe ratio tells us whether the returns of a portfolio are due to smart investment decisions or a result of excess risk.

  The Sharpe ratio was developed by Nobel Laureate William F. Sharpe to measure risk-adjusted performance. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The formula for the Sharpe Ratio is:

where R is the asset return, Rf is the return on a benchmark asset, such as the risk free rate of return, E[R - Rf]is the expected value of the excess of the asset return over the benchmark return, and s is the standard deviation of the excess return.