Our goal is to generate uncorrelated and consistent returns for our investors, through a strong research culture and diversified sources of alpha.
Our investment process counts essentially on a committee based approach, divided in five parts:
1. Initial Research:
day-to-day market activity and data flow provides the seeds for a new investment theme. The research team performs first screening of relevant data and analysis and presents results to the fund's investment committee.
once ideas are approved in the first investment committee, the research team initiates a more detailed investigation of the theme. The research process is based upon three main pillars: gauging the impact of international macroeconomic factors in the studied market, local macroeconomic factors and a detailed examination of policy makers influence (Central Banks, Finance Ministry, Regulators, etc.). Once all the information is gathered, the investment committee reconvenes.
the approval process follows a consensus approach, where the CIO has necessarily to agree on the theme. The research team does not vote in the approval process.
after a researched theme gains final approval from the investment committee, the portfolio manager and traders are responsible for presenting the best implementation strategies. A broad risk/return analysis is performed with our risk management team including: market technicality (to optimize position timing), stop-gain/loss limits, market liquidity risks, portfolio risk (portion of the investment thesis risk allocation as part of the total risk mandate of the fund), diversification (number of different strategies that could represent that thesis), etc.
following the implementation phase, the research team performs a weekly presentation with relevant data to the investment team. Likewise, traders monitor on a daily basis any short term changes that could affect our positions. Our risk management team monitors limits closely, as to stops, V@R limit, stress testing and liquidity.