Our investment philosophy

Our investment style is pragmatic, focused on macro investment themes, market momentum and active risk-management.

The process is driven by market fundamentals and results in high-conviction trades across all asset-classes, combined with tactical hedging using derivatives instruments.

Our discretionary mandates are completely performance-driven as our objective is to deliver sustained absolute returns in all market configurations, through liquid investments and without recourse to leverage.

Active Management

We focus on the mid-term financial market momentum.

We analyse the catalysts of the macro investment themes driving market trends.

We measure the risk for potential trend-reversals to avoid negative effects of temporary market dislocations.

Tactical Hedging

In a period of major structural changes, past returns no longer reflect market risks.

Defensive assets can also become risky when too expensive.

Implementing “event-driven

Flexible Approach

Defensive portfolios shall not be restricted to defensive assets.

We believe risky assets, when valued at a large discount, are safer than defensive assets when expensive.

Our objective is to capture up/ downward trends on all investable asset classes.

Common Sense

We always challenge our investment themes with a simple and pragmatic question:

Is the expected return of the selected investment theme sufficient in comparison to the risk undertaken?

We do not hesitate to have no exposure to an asset class if no upside can be identified.

Cost Efficiency

We invest in direct securities with limited recourse to funds. We are not linked to any investment or private banks.

Our open architecture generates demonstrable cost reductions for the benefit of our clients, reducing their total expense ratio.

Our investment service offering

Global Opportunity Strategy

Time horizon: 3 – 6 months

  • Following our macro and momentum-driven investment process, design of portfolios diversified across all liquid asset classes, including equities, bonds, FX and commodities.
  • Use of derivatives for hedging against trend reversals and the design of low-correlated income strategies
  • Bespoke mandates : Portfolio and strategy review with clients minimum once a month
  • Investment strategy also implemented in the Beauclerc Global Opportunity Fund

Equity Income Strategy

Time horizon: 12 – 18 months

  • Income-generation portfolios invested in short-volatility positions on large-cap equities (indices and/or individual stocks). Passive management focused on reduction of capital risk
  • Derivatives are used to protect the income targeted by giving-up the potential upside of the portfolio
  • Bespoke mandate : Portfolio and strategy review with clients minimum once a quarter
  • Possibility to use leverage facility negotiated at very competitive cost by Beauclerc

Beauclerc Global Opportunity Strategy

This strategy follows an asset-allocation style based on the conclusions of our macro views. The portfolio comprises of a series of top-down high conviction themes implemented across all asset classes, within a time horizon of 3-6 months. The strategy is available either as a bespoke mandate or through the Beauclerc Global Opportunity Fund, a Luxembourg-AIF.

The track record of this flexible capital appreciation strategy is calculated with the pro-forma returns of our segregated mandates since December 2011 and Beauclerc Global Opportunity Fund from April 2014 onwards. Daily liquidity.

Cumulated Performance, in USD

As of 30/09/2018

Methodology Notes

Pro-forma performances calculated daily; Audited performances; Reference currency USD; Time-weighted methodology; Net of management fees.

Portfolio key indicators, in USD

  YTD 1Y Since Inception
Cumulated Return 0.8% 1.2% 4.6% p.a.
Historical volatillity 2.6% 2.4% 5.9% p.a.
Average weekly return 0.0% 0.0% 0.1%
Max weekly return 0.8% 0.8% 2.8%
Min weekly return -1.5% -1.5% -4.2%
% positive weeks 53.8% 55.8% 56.9%
Beta to S&P500 0.04 0.05 0.28
Downside correlation to S&P 500 38.4% 33.6% 51.2%

Market prices available on Bloomberg and contributed by investment banks.
Management fees: 1.0% p.a.

Beauclerc Equity Income Strategy

This strategy seeks a regular income by monetising equity volatility and buying capital protection. Opportunistic management style, whereby the income targeted can be secured/increased by optimising the investment timing, selecting different underlying equity indices and changing the type of conditional protection barrier.

The track record of the income strategy is calculated with the pro-forma returns of the short-put structured notes purchased and rolled-over in Beauclerc segregated mandates since June 2013. Daily liquidity.

Cumulated Performance, in USD

As of 30/09/2018

Methodology Notes

Pro-forma performances calculated daily; Audited performances; Reference currency USD; Time-weighted methodology; Net of management fees.

Portfolio key indicators, in USD

  YTD 1Y Since Inception
Cumulated Return 2.6% 3.9% 7.5% p.a.
Historical volatillity 4.6% 4.1% 13.2% p.a.
Average weekly return 0.1% 0.1% 0.2%
Max weekly return 2.1% 2.1% 6.1%
Min weekly return -2.4% -2.4% -7.3%
% positive weeks 59.0% 59.6% 64.5%
Beta to S&P500 0.09 0.09 0.54
Downside correlation to S&P 500 45.9% 45.1% 43.4%

Market prices available on Bloomberg and contributed by investment banks.
Management fees: 1.0% p.a.