At QUAERO CAPITAL, we believe that value stems from independent thinking, an original approach and strong convictions.
European Small Cap Equity
Using a very focused and disciplined “Value Investing” philosophy, the QUAERO CAPITAL small cap team aims to invest in European small and micro caps that trade at a substantial discount to both their intrinsic value or to their long-term profit potential. The team operates in one of the least researched part of the European markets and is one of the most experienced in its field. This dedication to investing “under the radar screens” and to a very research-intensive process has produced very credible results since May 2003.
EUROPEAN MICRO CAP EQUITIES
Quaero Capital Funds (Lux) – Argonaut invests in small and micro caps listed on European stock markets. The Fund focuses on little-known or poorly followed smaller companies and situations that have been ignored by mainstream investors. The investment process is based on in-depth fundamental research through direct contact with company management and primary extra-financial analysis. The Fund applies a rigorous “Value Investing” philosophy with a willfully open mind, aiming to ensure a “margin of safety”, with the intention to accumulate a portfolio of ‘good’ companies acquired at ‘great’ prices. With significant minority stakes, the managers apply ‘constructive engagement’ to ‘encourage best practice’ on portfolio companies to further enhance performance, improve ESG metrics and shape the exit strategy. As a result, since launch 31 May 2003, the Fund has showed itself to be counter-intuitively resilient during market falls. This “Long Only” fund is alternative by nature, but traditional by structure. It is not tied by country, index or sector weightings and invests opportunistically as situations arise. The Fund is categorized as a SFDR Article 8 Product.
SWISS SMALL-MID CAP EQUITIES
The Quaero Capital Funds (CH) – Swiss Small&Mid Cap aims to produce capital growth by investing in a diversified portfolio of Switzerland-based small and micro caps applying a strict “value” bias. The Fund focuses on companies and situations that are mis-priced and often ignored by mainstream investors and analysts because they are less liquid than the market leaders. The rigorous “Value Investing” philosophy, aims to limit potential downside in the selected shares though a ‘margin of safety’ approach that has been used by the small cap team for the Quaero Capital Funds (Lux) – Argonaut. The Fund invests opportunistically.
Thematic & Regional Equity
INFRASTRUCTURE EQUITIES
The Quaero Capital Funds (Lux)- Infrastructure Securities takes advantage of the sector’s unique characteristics: low correlation to markets and business cycle, high correlation to price indexes. It offers diversification benefits for an equities portfolio and protection against inflation.
The focus is on companies with long-term contracts to build, maintain and operate infrastructure in sectors such as social infrastructure, communications, transportation, energy and water/waste sub-sectors. The Fund is categorized as an SFDR Article 8 Product.
CLEAN ENERGY EQUITIES
The objective of Quaero Capital Funds (Lux) – Accessible Clean Energy is to maximise total returns while contributing to decarbonisation. It invests along the clean energy value chain; which includes companies involved in clean energy technology development and production; renewable energy transmission and distribution; smart grid management; energy storage technologies; carbon capture; renewable energy services; raw materials used in the clean energy value chain; and energy efficiency products, systems and processes. The Fund is categorized as an SFDR Article 9 Product.
US EQUITIES
The objective of Quaero Capital Funds (Lux) – Cullen ESG US Value is to seek long-term capital appreciation through responsible investments in equities of US companies across all market capitalizations, trading at valuation levels deemed attractive by the Sub-Investment Manager. The Fund invests in companies which are industry-leading on environmental and social responsibility and stewardship, or are on a path of committed improvement, provided that they follow good governance practices. The investment approach is active, bottom-up and driven by fundamental research. The Fund is categorized as an SFDR Article 8 Product.
Fixed Income & Convertible Bonds
CONVERTIBLE BONDS
The objective of Quaero Capital Funds (Lux) – Global Convertible Bonds is to achieve long-term capital gain by mainly investing in convertible debt securities (vanilla convertible or exchangeable bonds and including money market instruments) having an investment grade credit rating or in the absence of rating by at least one of the leading and recognised credit rating agencies, with a credit quality considered as equivalent by the Investment Manager. The Fund invests globally and without any geographical or sector allocation constraints. The Fund is categorized as a SFDR Article 8 Product.
BONDS
The objective of Quaero Capital Funds (Lux) – Bond Investment Opportunity is to achieve a long-term capital gain. The Fund invests globally but mainly in OECD countries and without reference to any benchmark and without any geographical or sector allocation constraints. The Fund is categorized as a SFDR Article 8 Product and has been granted the ISR label.