Our investment philosophy

Our proprietary investment strategies are pragmatic, focused on fundamentals, market momentum and active risk-management.

We are completely performance-driven as our objective is to generate sustained absolute returns in all market configurations, delivered as capital appreciation or regular income.

The process starts with a top-down analysis of the market configuration and results in a selection of investment themes across all asset-classes. We use derivatives to optimise the performance of direct investments (typically equity indices and sectors), by designing strategies delivering similar expected returns than their underlying, with a much lower capital risk.

Our strategies only invest in liquid investments with no recourse to financial 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” hedges, with a short term horizon, is more efficient than designing simple low-volatility portfolios.

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.

Beauclerc investment strategies

Volatility Income Strategy

Time horizon: 6 to 7 months

  • Generation of high and recurring income derived from an equity underlying risk.
  • Targeted income : 8% p.a. in USD, 7% p.a. in GBP and 6% p.a. in EUR.
  • Strategy consists in selling put options on equity indices to reach the targeted income by giving away their upside potential in exchange of protection, to reduce the capital risk on the principal invested.
  • Monthly coupons are paid in bullish, trendless and even in moderately bearish equity markets.
  • The invested capital is usually hedged against the first 20% drop in selected equity indices at expiry date. Capital risk starts from the level of protection, instead of starting from the equity index level at inception.
  • Highly efficient risk-adjusted return, as historical risk of a capital loss at expiry date is much lower than for corporate bond portfolios and traditionally-managed balanced portfolios.

Diversified Growth Strategy

Time horizon: 6 to 12 months

  • Following our macro and momentum-driven investment process, design of portfolios diversified across 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.

Strategic Equity Transactions


  • Advisory on the implementation of one-off strategic transactions, typically the acquisition or disposal of large equity stakes in listed companies.
  • Advisory on equity financing structuring, i.e. the monetisation of mono-line portfolios including the optimisation of loan collateral and loan-to-value.

Volatility 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

Chart by Visualizer

As of 31/05/2024

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% 7.5% 6.6% p.a.
Historical volatillity 1.2% 1.7% 10.7% p.a.
Max. drawdown -0.4% -1.4% -32.8%
Var 95% (ex-post) -0.1% -0.1% -0.6%
Beta to S&P 500 0.05 0.08 0.41
Correlation to S&P 500 45.3% 49.0% 55.5%
Correlation to VIX -43.3% -49.8% -36.6%
Sharpe ratio 0.6% 1.0% 0.4%

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