Investment Approach
Our investment philosophy combines a quantitative approach with fundamental analysis. We believe this combination creates a highly disciplined and repeatable investment process and is a key to successful investing. We have designed and employ a multi-factor model that emphasizes factors that have historically proven to be effective at differentiating between strong and weak performing investment opportunities.
These factors measure:
Valuation
Assessing the intrinsic value of an asset to identify undervalued investment opportunities.
Growth
Evaluating the potential for future free cash flow, earnings and revenue expansion.
Business Quality
Analyzing the strength and sustainability of a company's business model and competitive position.
Management Behavior
Reviewing the capital allocation decision of company leadership to exploit extreme optimism and pessimism.
Investor Dynamics
Understanding market sentiment and investor behavior to anticipate market movements.
Risk Management
We use valuation analysis, experience, judgement, and disciplined risk controlled quantitative techniques to construct portfolios. We construct our portfolios to minimize unwanted risk exposures. We control for factors including: liquidity, size, sector exposure, currency and country exposure, industry exposure, position size, and company specific factors. Our portfolios are reviewed and rebalanced on a regular and ongoing basis to maintain the desired risk reward target.
Investment Strategy
Traditional long-only portfolio management with public and private asset classes is inefficient in terms of cost, taxes, diversification and in its’ ability to add value and outperform.
In order to achieve our objectives, we employ a multi-factor, market-neutral investment process leveraging Altema’s extensive global stock selection capabilities.
Market Neutral Investing
Market Neutral investing is a type of investment strategy undertaken by an investment manager that seeks to profit from both increasing and decreasing prices in one or more markets, while attempting to completely avoid most asset class or market risk. We believe Altema market neutral strategies are a solution for the lack of real diversification within most portfolios among affluent and institutional investors.