Northwater Capital

NorthWater Capital provides investment management mainly to pooled investment vehicles and institutional-style clients, acting as the investment manager for private funds where investors are limited partners. The firm also offers discretionary portfolio management for those pooled vehicles and provides financial planning and project-based investment consulting on an hourly basis to certain clients.

The firm’s investment approach centers on a tactical allocation strategy supported by proprietary algorithmic, machine learning, and AI models that generate trade and sizing recommendations across short-, medium-, and long-term horizons; those model outputs are reviewed and applied by the firm’s investment representative. Strategies include frequent tactical rebalancing and may employ derivatives, short positions, margin, cryptocurrencies, and other actively traded instruments to implement the models’ probabilistic recommendations.

Distinctive features include its small, newly formed, single-advisor organization with no assets under management at the time of the brochure and the combination of asset-based management for pooled funds with project-based hourly consulting services—an arrangement that is uncommon for firms in this category. The firm also plans to serve as both investment manager and a related General Partner for its pooled vehicles, a dual role the brochure identifies as creating potential conflicts of interest that the firm says it will disclose to prospective investors.