Philosophy

Good risk-adjusted returns are the result of well-structured portfolios, based on a consistent global view of the medium-term. Our analytical framework is based on economic theory, as it applies to international economics and finance. read more

Medium term objectives

Dynamic asset allocation means we constantly question our view of the world as information evolves, and assess its consistency with the structure of portfolios. We work for the medium-term. Short-term events could provide opportunities, but our sight is on medium-term objectives.

Top-down approach

Our approach is top-down, from the global macro to instrument selection. We strongly believe in regional and currency diversification. We place significant weight on price transparency, liquidity and efficiency.

Themes

Through our client acquisition effort we have observed that many people have portfolios that are only the result of accumulating securities and funds recommended by different brokers/bankers through time. It results in portfolios void of structure that lack a comprehensive view of the world, that do not change as trends develop and cycles evolve. We spend a significant amount of time and effort in understanding the underlying phenomena in the world economy, the key debates and themes that drive markets and policy. Thinking in terms of themes is the most efficient approach to having a well thought out and internally consistent medium-term view.

From reallocations to trends

As themes emerge and gain traction in the markets, they first produce some serious portfolio reallocations that move markets, which can be followed by medium term trends. If a theme were fundamentally solid and sustainable, the initial short-term move would be followed by a trend. Investing in sustainable and promising themes is a necessary component of protecting and generating value in portfolios. Emerging Local Markets is an example of a theme.

Execution

It is very important to us to be cost efficient. We focus on picking the most cost efficient asset to achieve a certain goal and, on executing each transaction efficiently. Trade execution is key to optimize the client’s portfolio returns.
While we consider similar assets to invest in, we evaluate the asset’s cost structure, liquidity, price transparency, execution fees and tax implications. Our institutional trading experiences allow us to move with confidence and understanding across asset classes.

Pricing and Technology

Our technology platform enables us to access the pricing information across broker dealers in real time, making the execution process transparent. Our systems maintain our portfolios independently from custodians, and check with custodian information on a daily basis. Checking accounts on a daily basis has produced non-trivial savings for clients. read more