Global Core Equity

Our strategy offers a different exposure from most other global core equity strategies, since we employ forward-looking, total-risk metrics, rather than the widespread  backward-looking, relative-risk measures.   This normally results in a meaningfully different portfolio, that can provide diversification when investors need it the most, that is when the capitalization-based portfolio is badly positioned for future outcomes.

Our merit-based investment strategy results in a structurally-diversified (as opposed to the common statistically-diversified) portfolio, made of firms that are creating wealth for their shareholders, that satisfy our criteria for environmental sustainability and good corporate governance and that operate in industries positioned for future growth.  A simple look at the holdings of our portfolios will show that our stock selection criteria differ radically from the ‘dumb’ selection criterion of the capitalization-weighted portfolio, which is, in essence, ‘the higher the price, the more you buy of that stock’.

Why investing in the strategy:

• The combination of ‘smarter’ investment criteria and stringent risk management,  built on forward-looking total-risk metrics, transform the equity market’s typical concave payoff into a beneficial convex payoff.

• Reducing the volatility of returns improves the effect of positive compounding and, as the excess returns from our strategy typically occur during bad times in the stock market, our portfolio help dampen the volatility of investor’s whole portfolio.   Which, in turn, dampens the well-documented risk that investors sell the portfolio at the worst possible time.

• A properly diversified portfolio, when compared to a concentrated one, has a higher probability of outperforming the market over a full cycle.

Global Equities (hedged)

Our hedged equity strategy seeks to deliver an equity-like return with significantly less variability, by investing in what are deemed to be attractive industries and themes across global equity markets.  Similar to our long-only core equity strategy, the hedged-equity strategy builds a portfolio that aims at a low downside capture whilst, at the same time, participating enough on the upside. Application of hedging and ‘crisis alpha’ strategies enables us to create a portfolio convexity which is stronger than our long-only mandates’.

Why investing in the strategy:

• It seeks to enhance core equity allocations, by reducing risk in the equity portion of the portfolio, whilst preserving equity-like returns

• Merit-based investing offers a valuable (necessary?) diversification to passive or index-hugging strategies

• Its ‘expectations approach’, combining quantitative models with measured human judgement, seeks meaningful alpha from both long and short exposures

Harvest Global Corporate Bonds

The Fund offers exposure to the global investment grade corporate bond market, in your local currency. The master fund is managed by AQR, one of the leading asset management firms in the world. AQR has implemented a quantitative approach, to harvest alternative risk premia in the global credit market. Such premia have low correlation to traditional equity and bond risk premia, hence the fund can be a good supplement in a diversified portfolio.

Why investing in the strategy: 

• The strategy seeks to outperform the global investment grade corporate bond market, without taking on additional credit risk.

• The Fund gives access to AQR’s investment process in your local currency.

• Quantitative investing is not a common investment approach to credit markets, hence we believe the Fund offers a higher likelihood to generate alpha.

Customized Investment Solutions

Our investment system allows financial advisers and allocators to design, implement and maintain deeply customized investment strategies.  Through our managed account offering, we provide access to our forward-looking risk models, proven investment criteria and multi-objective portfolio optimization tools.  Advisers and allocators can work with our investment team to design their strategies, or we can do it on their behalf (in this case, offering unparalleled transparency for their managed accounts).  Using our portfolio analytical tools, the solutions provided can be fitted around  other investments, as we can help our clients gain a better understanding of their prevailing exposures.

Key benefits:

• The faculty to use thematic restrictions to exclude specific industries, markets or stocks from the portfolio. Or, we can simply execute on a client-defined exclusion list of individual stocks.

• The possibility to target investment themes, criteria and decision styles clients have conviction in, to build  a strategy that reflects their firm’s investment approach

• All trading, rebalancing and cash flows are handled by us, making for easier clients’ operations

Please contact us if you want to learn more about our customized solutions: