Firm Profile: Value Equity Management Firm
Products: Market Lens
About LSV Asset Management
Formed in 1994, LSV Asset Management is a quantitative value equity manager providing active management for institutional investors. LSV currently manages approximately $122 billion in value equity portfolios for approximately 360 clients as of September 30, 2018.
Some of the main challenges that LSV was hoping to solve with Market Lens include wanting to be more efficient with where the team was spending their time and resources when handling new business opportunities, preparing for client meetings and gaining a deeper understanding of consultant perceptions of the firm.
eVestment spoke with Brett Goldacker, Associate Director, New Business Development and Josh Dupont, Director, Client Portfolio Services, about their experience using Market Lens and their excitement about strategic projects the solution will allow them to execute.
Strengthening Competitive Positioning
Goldacker is responsible for competitive analysis and thinking about how to position LSV versus other managers. He said he uses Market Lens to understand where the sales team should be focusing their efforts. “The main way I use Market Lens is from a strategic perspective. What can I see in terms of trends? What are consultants up to? What are public plans doing? Are plans moving away from their targets? Are there going to be expected moves in terms of allocations that we’re going to see in the future? It’s critical for us to have that information.”
Dupont manages a number of the firm’s external relationships and is often on the road visiting with clients and consultants. “I will leverage a lot of the work Brett does alongside the work I am doing and try to put the Market Lens data to use. I set up alert notifications in Market Lens, so I get pushed all the information I want without having to work through it on my own.”
Dupont shared an example of a recent board presentation for a client and how Market Lens was useful in his preparation. “Prior to the meeting, Market Lens allowed us to access a detailed consultant document that went through a number of the underlying questions we had. We could quickly compare manager fees, performance characteristics, and correlation structures and were able to run analyses through eVestment Analytics to better understand how we fit from a competitive profile.”
Dupont continued, “With Market Lens, we were able to be more prepared, more relevant, and have a better understanding for how we could position ourselves. Market Lens was able to help us be more thoughtful and answered all the questions we had in advance of the presentation.”
Understanding Consultant Perceptions
Both Dupont and Goldacker agreed that consultant ratings, strategy preferences and understanding how consultants perceive both LSV and other managers was vital to their jobs. Dupont said, “Understanding product ratings and changes in those ratings is critical to be prepared and address any touchpoints and sensitivities that we might not otherwise be aware of. Market Lens is a great additional resource that helps us stay up-to-date with what is going on with consultants and our clients.”
Goldacker discussed a recent finals presentation and how Market Lens was able to provide additional feedback beyond direct conversations with the prospect and consultant. He said, “With Market Lens, I was able to quickly read the feedback from the board regarding why they chose the managers they did. We better understood why we weren’t selected for the mandate which allowed for us to internally discuss a new strategy for future opportunities with that plan. Market Lens promptly gave us that detailed information.”
Market Lens Versus Competitor Offerings
Goldacker said, “Market Lens is very complementary to some of the other services available, but it also has some unique characteristics that none of the other services offer. I can’t think of another provider who has the data on both actual allocations and target allocations. The ability to tie directly into eVestment Analytics of course is unique, as is getting the consultant profile views from Advantage. Being able to do all that in one place, coupled with the ability to read the actual documentation – Market Lens is the only place you are able to capture that type of information.”
A Resource for Advanced Information
“The Public Plan IQ database is a wonderful, fantastic resource, and Market Lens ties it all together,” Dupont said. “Market Lens allows us to find the relevant information, whether it’s a rebid, a new business opportunity, or an existing client or consultant relationship. I really feel like I have all the information that I need to be more informed and more relevant during a meeting. Market Lens pushes information to me before it’s typically announced.”
“Market Lens is very complementary to some of the other services available, but it also has some unique characteristics that none of the other services offer. I can’t think of another provider who has the data on both actual allocations and target allocations.”
New Business Development
“With Market Lens, we were able to be more prepared, more relevant, and have a better understanding for how we could position ourselves.”
Client Portfolio Services