Castle Investment Management was founded in 2010 and is located in Alexandria, Virginia. The firm is managed by its two founders — Caeli Andrews and Andrew Welle.
Everything we do is built around our long-term perspective on investing. Our sub-advisers have established institutional track records, and we bring their strategies to investment professionals through Castle mutual funds. Each of our investment teams follow an understandable, repeatable investment process. Our sub-advisers must have the fortitude to stick to their investment process regardless of the market environment. We recognize that having this discipline can require a great deal of patience. We prefer sub-advisers who focus on delivering risk metrics lower than the broad market (metrics such as down capture, beta, and standard deviation). We place little emphasis on short-term performance and judge the results of our sub-advisers over a full market cycle. Castle is responsible for the selection and ongoing monitoring of each Fund’s sub-adviser, including the adherence to the fund’s investment objective, style integrity, return objective and risk parameters.
We build long-term relationships with like-minded investment professionals and deliver our specialized investment strategies to their clients through the Castle family of mutual funds.
The sub-advisers we select must have the following attributes: Curiosity, Patience, and Fortitude.
Curiosity is necessary to understand the fundamentals of a business, as well as the risks and rewards of an investment.
Patience. We believe the price paid for an investment is a key determinant of total return. Investments made at too rich a price leave little margin for error. We select sub-advisers who allocate shareholder capital only when investment opportunities can be made at a discount to their conservative estimate of fair value.
Fortitude. Finally, our sub-advisers must be willing to go it alone, diverge from the crowd, and stick to their investment process regardless of the market environment.
Beta is a measure of a portfolio’s sensitivity to the market. Standard deviation measures an investment’s historic volatility. The down capture ratio is a statistical measures of a manager’s overall performance in downward moving markets.
We define a full-market cycle as a period of time, usually measured in years, that includes both ‘bearish’ markets (the market trends down) and ‘bullish’ markets (the market trends up).