The Investment Management process is a Top-down, macro-economic and valuation driven asset allocation process that relies on FOUR pillars:
- In-depth Macro-Economic analysis
- Tri-dimensional Asset Class and Securities Valuation analysis
- Market Psychology, Flow of Funds and Technical analysis
- Stringent Risk Management techniques
Valuation is, by essence, a concept of relative nature.
The manager performs valuation analyses with respect to :
- The intrinsic value based on underlying fundamental criteria.
- The value relative to its peer group.
- The value relative to its own trading history.
Phenomena of valuation expansion or compression can be long lasting and substantial
in terms of magnitude. Identifying them is key to a succesfull asset allocation process.
Asset price behavior is determined more by the perception of the community of investors
of the evolution of the underlying fundamentals than by the absolute levels of their valuation.
Analysing the invested position of the consensus, factors that could influence supply and demand, turning points in the trends of asset classes or specific securities is essential to optimizing the ris-reward of any investment.
Trending markets are always more profitable than trading markets and the investment
manager concentrates on medium term trends.
The purpose of the fund is to generate positive returns regardless of markets
conditions by being invested solely in asset classes and securities that offer a positive
combination of macro background, cheap valuations and favorable market psychology and
technical factors.
A key determinant of performance generation is the ability to avoid losses in cases of unforeseen events, and for that purpose, strict risk management rules are followed at all times .
Institutional studies show that 90% of performances can be attributed to global asset
allocation decisions.
Determining with the highest level of accuracy the likely behavior of economic
growth, inflation rates, monetary policies and liquidity flows is essential in making efficient
global asset allocation decisions.
The investment manager uses independent macro-economic research institutes tested
successfully over the last two decades.