Gotham recently cut fees on Gotham Absolute Return substantially to 1.50% from 2.15%. The strategy itself offers investors balanced exposure to quality and value factors, but the team’s approach to research and development lacks a distinct edge. Still, the fee cut is significant, and lowers the hurdle for success. This merits a Morningstar Analyst Rating upgrade to Neutral from Negative.
Will GARIX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable GARIX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the GARIX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of GARIX’s parent organization’s priorities and whether they’re in line with investors’ interests.