- ESG integrated approach that seeks to invest in “forgotten” companies that are under-owned by mainstream investors and that we expect to experience fundamental improvement.
- We believe this approach provides asymmetric risk/reward that may provide us a downside anchor with the potential to compound on the upside.
- In our search for unloved Emerging Markets companies, which we think have strong turnaround potential and offer strong downside risk management, we consider environmental, social, and governance (ESG) factors as important components in making fully informed investment decisions.
- Risk management is an integral part of the portfolio construction process.
- Typically 50-80 stock portfolio
- Individual position typically 0.5% to 5%, position sized by prospective risks
- Country ranges +/-10% absolute deviation from the benchmark
- Sector ranges +/-15% absolute deviation from the benchmark
- Reserves are normally less than 5%, max 10%