Distinct Approach and Unique Tools
The macro investing environment has changed radically. Increasingly non-market (politics, policy and societal) events are the catalysts for regime shifts in markets and asset classes. These regime shifts are the source of many of the negative tail events, especially in emerging markets. We specialize in understanding these non-market risks and how they interact with the macroeconomic and investment environment which allows us to build a comprehensive macro thematic view of the world.
We integrate our fundamental research with proprietary quantitative and Natural Language Processing (NLP) systems reflecting the importance of alternative data and signals outside of the typical macro toolkit and express our investment decisions globally on a cross-asset basis.
By understanding how these policy-driven events interact with macroeconomics and through use of our proprietary quant and Natural Language Processing (NLP) systems we aim to reduce the left tail while retaining upside convexity.
Differentiated Return Profile
We focus on two types of opportunities.
a) structural regime shifts in the global and domestic policy and political environment
b) tactical opportunities created by non-market variables such as elections, debt restructurings and sector specific policy shifts.
Investment themes are expressed across the sovereign asset spectrum (currencies, interest rates, sovereign credit and equities) including linear and non-linear derivative products to enhance the return profile associated with a given position.
This aims to create an option like return profile with significant upside volatility skew.