The strategy adopts a catalyst driven approach to unlock value on both an absolute basis and relative to competitors or peers and trading history. Catalysts can include events such as earnings reports, investor days, change of management, restructuring plans or any other events that the investment team believes will have an impact.
Idea generation is the result of rigorous bottom-up analysis complemented with top-down analysis designed to build an awareness of the current macro environment. Once an idea is selected and a catalyst path identified the team conducts fundamental and financial modelling of each individual company to test the validity of the investment thesis and ensure that risk mitigation is embedded throughout the process. This research process results in a concentrated but diversified portfolio1.
As part of the investment process, the investment team regularly monitors the catalyst path risk/reward profile, and price targets. The result is a tightly constructed portfolio with factor risk constrained and the majority of overall risk concentrated in idiosyncratic, stock specific risk.
1. These risk guidelines and/or limits are provided for information purposes only and represent current internal risk guidelines. There is no requirement that the Strategy observes these limits, or that any action be taken if a guideline limit is reached or exceeded. Internal guidelines may be amended at any time without notice.