Salerno Investments is an investment management company based in New York City that provides customized investment solutions to high net worth individuals and institutions. With over 30 years of experience, Salerno Investments has established a strong reputation for its research-driven approach and expertise across various asset classes. In this article, we will explore Salerno’s investment philosophies, strategies and offerings to gain valuable insights into how they construct investment portfolios to meet clients’ objectives. Understanding Salerno’s core competencies in public and private market investments can help investors determine if their approach aligns with individual financial goals and risk tolerance.
Salerno applies both top-down and bottom-up approaches in portfolio construction
Salerno’s investment process utilizes both top-down and bottom-up research to build customized client portfolios. The top-down approach examines macroeconomic factors like GDP growth, inflation and interest rates to determine optimal asset allocation across stocks, bonds and alternatives. The bottom-up analysis then focuses on security selection based on intensive fundamental research on aspects like financial statements, management quality and valuation. This combination allows Salerno to construct portfolios that are optimized for a client’s return objectives and risk constraints. Their active management approach also enables dynamic adjustments to portfolios as economic conditions and asset valuations evolve.
Public market investments cover a diverse set of traditional and alternative strategies
For public market investments like stocks and bonds, Salerno offers both long-only and hedge fund strategies. Their long-only strategies include value investing in undervalued stocks, growth investing in innovative companies, and index strategies that track market benchmarks. Alternative hedge fund strategies involve long-short equity, event-driven, relative value and managed futures approaches. Across these strategies, Salerno invests globally utilizing fundamental and quantitative techniques. This diversified set of traditional and alternative approaches provides clients with multiple options to achieve public market exposure aligned with their preferences.
Private market capabilities span private equity, venture capital, real estate and natural resources
In private market investments, Salerno has extensive experience in private equity, venture capital, real estate and natural resources. The private equity program targets investments in established companies and special situations like corporate divestitures. Venture capital investments aim to provide early-stage funding for emerging technology companies. For real estate, Salerno focuses on equity and debt investments in sectors like hospitality, multifamily properties and retail. The natural resources portfolio includes upstream oil & gas assets along with investments in renewables like solar energy infrastructure. Salerno’s wide-ranging private market capabilities allow clients to incorporate illiquid assets into their strategic asset allocation.
Portfolio construction integrates investments in a risk-optimized framework
The culmination of Salerno’s investment process is the construction of customized portfolios optimized for each client’s objectives. Their advisors collaborate with clients to determine an appropriate long-term strategic asset allocation across stocks, bonds, alternatives and cash based on personalized return goals and risk tolerance. Salerno then combines its public and private market capabilities to build portfolios aligned with the client’s targets. Ongoing tactical adjustments are made to fine-tune allocations as market conditions evolve. Regular portfolio reviews ensure portfolios remain optimized over time as client circumstances change.
In summary, Salerno Investments leverages seasoned investment professionals and robust research capabilities across diverse public and private market strategies to construct customized portfolios aimed at helping clients achieve their investment objectives. Their active management approach provides exposure to multiple asset classes in a risk-optimized framework.