"Analyzing the macroeconomic context and profit cycles enables us to anticipate equity cycles and outperform in various market environments."

Vincent Delisle

Co-Chief Investment Officer

Our Investment Philosophy

Markets should be analyzed in their global context

We take a top-down approach to portfolio management. A company’s performance depends on the macroeconomic environment; to identify market opportunities and risks, our team therefore takes the time to analyze and understand economic and geopolitical issues and their impact on businesses.

 

Diversification of investment decisions throughout the various cycles is essential

We actively manage our exposure to regions, countries, currencies, sectors, industries and securities. We believe that, by identifying opportunities from amongst many potential sources of return, we gain the flexibility to offer a performance that is stable over time.

Preservation of capital is the key to long-term value added

Cautiousness is essential to our investment culture, so our approach includes a value bias and our positioning is often contrarian. In our opinion, that is the only way to avoid excesses and bubbles. We would rather miss an opportunity than lose money.

 

A rigorous process is the best way to maximize active management

Our fundamental investment process is based on systematic analysis of three vectors: the macroeconomic environment, an assessment of the markets and investor sentiment. This disciplined approach is supported by quantitative tools that minimize human interpretation bias.

"A good dose of contrarian opinion helps us avoid the traps occasionally set by the comfort of consensus."

Vital Proulx

Co-Chief Investment Officer

Our Decision-making Process

Structure and Rigour

 

We analyze each investment decision as a function of three factors that have a major influence on asset prices:

 

  • The macroeconomic environment
  • An assessment of the markets
  • Investor sentiment

Our disciplined approach, combining analysis of macroeconomic and fundamental factors, creates a solid base enabling us to maintain the courage of our convictions.

 

Decision-aid Tools

We use quantitative tools, developed internally as a function of our approach, to validate our macroeconomic analyses and to generate investment ideas. We believe such tools are vital in a context of increasingly efficient markets. They also enable us to avoid the behavioural biases that affect all managers.

 

 

Risk Management

Our approach to market-risk management has historically resulted in low volatility and effective protection from market declines, owing to the value bias of our approach and our tendency to take contrarian positions. Moreover, an independent Risk Committee oversees the portfolios’ active risk.