OUR INVESTMENT PROCESS
Our investment process seeks to link the macroeconomic cycle with the financial cycle, through a Hindsight, Insight and Foresight iterative process. We combine top-down macro-thematic analysis with a bottom up quantamental analysis to identify investment opportunities.
PAST | Hindsight
PRESENT | Insight
FUTURE | Foresight
We identify and model macro themes, from observing various macro data sets with the goal of determining the current macro environment. Certain macro environments can be supportive or destructive to the performance of a particular investment strategy.
We spend most of our time collecting, processing and researching fundamental data and price relationships (risk premias). We test these risk premias on macro themes and apply evidence-based enhancements to see why certain investment opportunities occur, and when and how they can be efficiently traded.
We are different from the herd because we focus on facts and data, not opinions.
We use a systematic, data-driven macro process that doesn’t rely on narratives. We don’t spend time focusing on the story. Rather, we look at quants, history, macro trader/behavioural finance and we have a hedge fund mindset to invest and use hedge fund tools to create alpha. In contrast, traditional Asset Managers tend to be consensus-driven, invest with a long-only mindset, and rely mostly on gut feel and valuations or single-style focus. We focus on the rate of change accelerations and decelerations of trends, which are facts, not opinions.
