The investment philosophy
1. Equity market has entered an era of irregular growth…
Our Equity Absolute Return approach was developed based on the following observations: The long bull market from 1982 to 2000 justified a fully invested, benchmarked approach to the stock market.
We believe markets have again entered a highly volatile period similar to the one witnessed in between mid-60’s and early 80’s
To achieve performance in this environment, the portfolio manager needs flexibility and strong choices.
2. Bonds are no longer a safe investment…
10 year US Treasury bonds
After 22 years of bull market, bond yields are close to a 50 year low.
They offer limited interest income and show vulnerability to higher interest rates.
10 year European Treasury bonds
Our answer to this challenge : an opportunistic investment strategy and a flexible asset allocation
In response to the challenges set by the equity and bonds markets behaviour, we have developed an opportunistic investment strategy, based on:
Strong views, regardless of composition of the indices.
Continuous risk monitoring, allowing us to adapt our portfolios risk/return to our clients requirements.
Our investment goal is to participate in the growth of the markets whilst limiting negative impact in market downturns resulting in positive long term performance.
This goal is achieved via a flexible asset allocation which reacts to the economic and market environment: the portfolios’ net equity exposure can vary significantly based on our own analysis and views on the markets.
High pro-activity is obtained via the use of index futures to protect the portfolios when needed, so combining:
High liquidity, which allows us to react in all markets’ conditions.
Moderate transaction costs, due to low portfolio turn-over.
Our investment universe encompasses a broad range of assets: equity, fixed income instruments, gold and commodities.
After 22 years of bull market, bond yields are close to a 50 year low.
They offer limited interest income and show vulnerability to higher