Sextant's longest-tenured managers do not have the same experience as teams at other firms. Specifically, average asset-weighted tenure within the firm is only five years, building concern in the group's ability to manage capital through a full market cycle effectively. Sextant strategies have failed to have lengthy success. In particular, the firm's 10-year risk-adjusted success ratio demonstrates that only 25% have both survived and beaten their respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fees on its funds are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.