MacKay Shields & MainStay Investments

Investment Processes

MacKay Shields manages fundamental and quantitative long-only and liquid alternative equity strategies across multiple market capitalizations and styles including US, international, emerging, and global markets. With roots dating back to 1993, the firm has an extensive track record of successfully leveraging comprehensive and exacting research capabilities and consistent processes to deliver superior investment results for its clients. At the center of our firm is an uncompromised commitment to research, in all its forms: fundamental, quantitative, alternative, and thematic. Our teams of investment veterans combine proprietary research with prudent trading, awareness of influential global trends, and good peripheral vision of the positions of other market participants.

International Equity

The International Equity team believes the best way to create value is to invest in sustainable growth opportunities. Through bottom-up analysis, the team of seasoned portfolio managers and analysts seeks to invest in reasonably priced companies with sustainable competitive advantages that can grow earnings regardless of the economic cycle. To identify such companies, the team quantifies long-term secular growth trends and those companies poised to benefit from them. They maintain a watch list of these companies, tracking their valuations, and waiting for opportune times to buy shares at reasonable prices. The investment team employs a very disciplined and rigorous buy and sell process that results in a rather concentrated portfolio containing high-conviction names and very little turnover.

Quantitative Equity

The Quantitative Equity team believes the key to investment success is adhering to a disciplined, transparent, and intuitive investment process that brings together the important elements of security analysis, risk management, and superior portfolio construction. While markets are generally efficient, inefficiencies can and do exist, creating investment opportunities and the potential to generate alpha. To exploit these opportunities, the team utilizes a multi-factor stock selection model to identify high conviction buy and sell ideas and builds a portfolio maximizing expected returns on a risk-adjusted basis. The team believes one size does not fit all – as such, investment models are customized to fit the needs of a specific strategy and closely monitored by the portfolio managers in order to identify and address any blind spots. The team uses innovative portfolio construction techniques and sophisticated trading technologies, resulting in predictable alpha generation for their clients.

Firm Expertise

At MacKay Shields, our deep-rooted values set the environment for our team members to operate and serve our clients. We have earned and continue to earn our clients’ trust by operating at the highest levels of professionalism and integrity, by offering tremendous personalized service, and, of course, by striving to consistently deliver superior investment performance. Finally, we encourage each of our team members to be engaged, positive forces within their communities in order to sustain and enhance the world we live in.