Selection Process

“Many think that talent is the result of luck; Very few understand that luck is often the result of having talent”
JACINTO BENAVENTE.

The selection of managers is the key component of our business model. The manager we represent reflect on us. Therefore, the Due Diligence process is performed internally from the triple perspectives of analysis of the three "P's":

  • People

- Independent Boutiques: The most talented managers tend to leave large firms to establish their own business skills.
- Alignment of interests: These managers typically invest a substantial portion of their equity in the funds they manage.
- They are specialists in one specific asset class.

  • Process

- Thorough: the investment process should be clearly defined and tailored to the investment objectives of the strategy.
- Consistent: the manager must have proven to be faithful to his investment process even when the market does not favour his investment style.
- Transparent: it should be easy to explain and accessible to clients. We do not want "black boxes".

  • Performance

- Actual historical performance and not "pro forma".
- Clear generation of Alpha against the indexes.
- Consistent: We seek consistency in this generation of Alpha based on an "rolling" periods analysis.
- Isolated negative returns are acceptable. Provided that the investment process has remained intact, they are usually a good investment opportunity.