Castleton Partners: A Note To Friends And Colleagues

Castleton Partners has now been verified and claims compliance with the Global Investment Performance Standards.

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Since our inception, Castleton has managed our clients' assets through the prudent application of established bond investing principles, sound reasoning, and the identification of value opportunities in the fixed income markets. We haven't followed index-oriented guidelines, nor have we allowed performance to dictate our investment decisions. Instead, we have adhered to an unconventional philosophy: “We do not manage for performance. We manage risk… and learn to accept superior results.”

The latter assertion—we learn to accept superior results—may warrant a healthy degree of skepticism. After all, how can we claim superior results without publishing our performance?

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More


In an effort to enable the comparison of our investment returns, we have elected to provide the necessary composite metrics.

Attached, please find the results of a comprehensive third party audit of our process for calculating performance over the five year period 2010 - 2014. Castleton has now been verified and claims compliance with the Global Investment Performance Standards (GIPS)—a voluntary and rigorous ethical standard for presenting and disclosing performance results, developed by the Chartered Financial Analyst Institute.

Castleton Partners Annualized Performance

We are gratified by the results, but not surprised. What we think is remarkable and worthy of your awareness, however, is that not only does our composite rank among the best performing strategies within the asset class (for which data is publicly available), but that this performance has been achieved through the use of highly rated, ultra liquid, general market credits. Unlike many of our peers, we avoid using higher yielding, lower rated credits for the sake of achieving performance. Nor do we engage in leveraging, shorting or the use of derivatives. Rather, we adhere to our credo, well summarized by Mark Twain: “I am more interested in the return of my money than the return on my money.”

While we are always prepared to modify or adjust to any conditions that affect our investment decisions, we see no reason to change our fundamental approach.