"Analyzing the macroeconomic context and profit cycles enables us to anticipate equity cycles and outperform in various market environments."
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.
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.
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.
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."
We analyze each investment decision as a function of three factors that have a major influence on asset prices:
Our disciplined approach, combining analysis of macroeconomic and fundamental factors, creates a solid base enabling us to maintain the courage of our convictions.
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.
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.