Due Diligence Deep Dive - Andrew Miller

What led you to this field?

I think it’s exciting. In my opinion, literally everything influences the markets. There are always new ideas. I also think I have a competitive edge in my personality, so there’s probably an element of that too.

How do you stay on top of industry best practices?

At the end of the day, it’s a myriad of things. There are certainly a growing number of tools out there, most of which continue to evolve. Consuming media is important – Citywire, FundFire, Barron’s, Bloomberg, The Wall Street Journal, etc. But I do think connecting with colleagues is key, whether at conferences, among your network, or in your workplace. That’s how you can learn more about new managers, new techniques, or just get access to information you might not otherwise have.

I think we’re spoiled at Harbor, with a very well-networked Investment Research Team, who continually reaches out to managers, and who also has managers reaching out to it. I’d also say our team particularly benefits from four other adjacent teams at Harbor: Robust data aggregation and analysis from the Investment Risk, Analytics, and Insights Team; additional insights and analysis from the Investment Specialist Team; quantitative methods and asset class insights from the Multi-Asset Solutions Team; and marketplace innovation insights from the Product Team.

Are there traits or characteristics you’ve found to be most often associated with investment success?

Earnestness, humility, wisdom, and common sense. On the point of humility, you need to be aware of what you know and what you don’t know – and admit that.

Is there a step of your manager evaluation process that’s critical for you?

Manager evaluation is constant, but I ground that in understanding their philosophy and why they believe what they believe. That helps establish trust and understanding early on, so when – not if – the manager underperforms, there’s a conviction that holds the relationship through the cycle.

What’s a common reason that you’d choose not to underwrite a manager?

If it seems like they’re driven by a fad or what’s popular at the time, or if I don’t perceive the spirit of what’s being done to be genuine research, that’s often a red flag for me. I believe the more wellgrounded a manager’s approach, the more reliable it may be in adding value for clients.

What does the concept of hidden gem mean to you?

One aspect of it is being able to appreciate certain characteristics that others may overlook or not give as much weight to. Personally, I’m particularly interested in how the actions of a manager and/or the vehicle setup may influence after-tax returns – and believe sensitivity to this aspect could potentially add tax value over the cycle for clients.

Do you have any advice for an aspiring research analyst?

You need to work hard, but this job is so much more than that. It’s a continual process of gathering information from as many sources as possible, and then developing a repeatable framework, based on humility and probabilities, to help you decipher performance.

Harbor Capital Advisors

Harbor Capital Advisors is an asset manager known for curating an intentionally select suite of active ETFs from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our passionate obsession to find what we believe to be the best – bold solutions that have the potential to produce compelling, risk-adjusted returns.

For more information, visit www.harborcapital.com.

Important Information

Investing entails risks and there can be no assurance that any investment will achieve profits or avoid incurring losses.

These views are not necessarily those of the Harbor Investment Team and should not be construed as such. Financial Professionals should consult directly with your firm’s compliance department to obtain precise advice based on their policies, procedures, and any industry-specific regulations.

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