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 Investment philosophy, the QUAERO CAPITAL small cap team aims to invest in smaller European companies that trade at a substantial discount to both their intrinsic value or to their long-term profit potential. The team is one of the most experienced in its field and operates in one of the least researched part of the European markets. This dedication to investing “under the radar screens” and to a very research-intensive process has produced very credible results since 31 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 wilfully 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.
EUROPEAN SMALL & MID CAP EQUITIES
The Quaero Capital Funds (Lux) – Quaeronaut Small & Mid Cap maximises long term capital growth by investing primarily in a portfolio of small and mid capitalisation European companies (including Switzerland and the UK). The fund follows a “Quality Value” investment style, based on in-depth fundamental analysis and active management, resulting in a concentrated portfolio of some 40 to 50 positions. The investment team considers environmental, social and governance analysis as a vital part of the investment process. The fund is categorized as a SFDR Article 8 Product.
EMERGING EUROPE SMALL-MID CAP EQUITIES
The Quaero Capital Funds (Lux) – New Europe invests in small and medium sized companies across Eastern Europe according to a broader definition of the region. The fund focuses particularly on little-known or poorly followed smaller and medium sizes stocks that have been ignored by mainstream investors, sometimes due to their location or their size. Many of the capital markets within New Europe have scant to nil institutional coverage and this provides an opportunity for the fund to find mis-priced securities, albeit with them often being of limited liquidity. The fund is managed with a contrarian mindset and value investment philosophy with a particular focus on “margin of safety” (thereby attempting to limit potential downside).
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 smaller companies 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’ philosophy, aims to limit potential downside in the selected shares though a ‘margin of safety’ approach that has been used by the Quaero small cap team for the Quaero Capital Funds (Lux) – Argonaut. This fund invests opportunistically.
Regional Equity
JAPANESE EQUITIES
The objective of the Quaero Capital Funds (Lux) – Taiko Japan is to achieve long-term capital growth by investing in listed Japanese companies. The fund seeks to profit from investment opportunities by identifying under-valued securities using a variety of fundamental analytical tools focusing upon growing cashflows and then employing qualitative screens to implement positions. The Fund has a concentrated portfolio, typically holding between 20 and 30 different positions at any given time but with diversification across multiple sectors.
ASIAN PACIFIC EX JAPAN EQUITIES
The Quaero Capital Funds (Lux) – Bamboo is a long-only equity fund investing in companies driving economic growth across sectors with a focus in Greater China, India and ASEAN markets. The emphasis is to find the best companies within growth themes with 3-5 years visibility throughout the region, and to build a concentrated portfolio in pursuit of capital gains alongside capital preservation. The research process includes c.300 company visits a year, an assessment of reputation, vision, track record and ESG impact. The portfolio is constantly monitored for risk, validation of investment theses and appraisal of companies and management.
The Quaero Capital Funds (Lux) – China is a blended, growth-bias fund that aims to produce long-term capital growth by mainly investing in Chinese A-shares, H-shares and ADRs. Consumer discretionary, pharmaceuticals and clean energy are among the sectors it invests in.
US EQUITIES
The objective of the 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.
Thematic Equity
INFRASTRUCTURE EQUITIES
Specialising more specifically in infrastructure investment in Europe, the Infrastructure (not listed) investment team focuses on the PPP / PFI sector and private project financing by targeting small to mid-size infrastructure projects. We believe that this strategy offers an attractive risk / return framework and direct access to recurrent cash flows over the long term. The investment team has in-depth knowledge of the infrastructure market and its players in Europe. It has strong expertise in financial engineering enabling to invest with protective features for its investors, following a thorough investment process. QUAERO Infrastructure implements a generalist approach: telecom, transport, social infrastructures, utilities, water and energy. The QUAERO Infrastructure team is also committed to responsible investing and has established a charter of principles to integrate responsible governance, social and environmental criteria in its investment process.
Using research gathered over several years, the fund managers have built an expertise in infrastructure investing. The Quaero Capital Funds (Lux)- Infrastructure Securities (listed) provides a liquid alternative to what has been traditionally the domain of private equity. The objective of the strategy is to provide a long-term thematic vehicle with daily liquidity for investors wanting to take advantage of the sector’s unique characteristics: low correlation to markets and business cycle, high correlation to price indexes, diversification benefits for an equities portfolio and protection in difficult markets. The fund aims to recognise the inherent long-term impact of the infrastructure sector by supporting only those 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 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.
GLOBAL CLEAN ENERGY EQUITIES
The objective of the Quaero Capital Funds (Lux) – Accessible Clean Energy fund is to maximise total returns while contributing to decarbonisation by investing and taking an active role along the clean energy value chain. This includes a wide variety of companies including those involved in clean energy technology development and production (including solar, wind, bioenergy, hydraulic, geothermal energy), renewable energy transmission and distribution, smart grid management, energy storage technologies including hydrogen and batteries, carbon capture and renewable energy services, raw materials used in the clean energy value chain and energy efficiency products, systems and processes. The fund provides access to a large and diverse set of industries via an active, long-only listed equities strategy offering daily liquidity. The fund is categorized as an SFDR Article 9 Product.
GLOBAL TRANSITION ENERGY
The objective of the Quaero Capital Funds (Lux) – Net Zero Emission fund is to maximise total returns while contributing to a Net Zero Emission world by investing in companies whose services, products or technologies contribute to the transition to a carbon-free economy. The strategy focuses on every high-GHG-emitting sector and targets current and future leaders that provide services, products or technologies contributing to the decarbonization of the economy and can therefore be considered as part of the “solution” to the climate crisis. The fund is categorized as a SFDR Article 9 Product.
Bonds
CONVERTIBLE BONDS
The objective of the Quaero Capital Funds (Lux) – Global Convertible Bonds fund 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 recognized 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 the Quaero Capital Funds (Lux) – Bond Investment Opportunity fund 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.
Multi-Asset
GLOBAL YIELD OPPORTUNITIES
The Quaero Capital Funds (Lux) – Yield Opportunities fund invests in assets with attractive risk-adjusted yields across asset classes on a worldwide basis and aims to achieve consistent risk-adjusted returns with low volatility over the long term. Using a macro overlay, the manager invests in undervalued yield opportunities currently subject to concurring positive macroeconomic changes. Portfolios are the result of individual opportunities selections and are not constructed by reference to any benchmark. The manager applies a rigorous capital allocation and risk control by monitoring overall exposure to FX, rate and credit spread.