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 Smaller Companies 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 small cap 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 over the past 15 years.
EUROPEAN MICRO CAP EQUITIES
Argonaut is a Deep Value Equity Fund that aims to produce substantial capital growth, by investing in micro capitalization mis-valued companies quoted on European stock markets. The fund focuses particularly on little-known or poorly followed smaller companies and situations that have been ignored by mainstream investors (often because they are considered to be too small to be of interest). The fund is managed with a rigorous “Value Investing” philosophy, aiming to limit potential downside in the selected shares, ensuring a “margin of safety”.
EMERGING EUROPE SMALL-MID CAP EQUITIES
The New Europe strategy invests in small and medium sized companies across Eastern Europe according to a broader definition of the region, including countries such as Greece, Turkey and Russia. The strategy 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.
SWISS SMALL-MID CAP EQUITIES
The Swiss Small&Mid Cap strategy aims to achieve capital growth by investing in a diversified portfolio of Swiss-based companies, applying a strictly “Value” bias. The strategy focuses on companies that are undervalued or neglected by investors and analysts because they are less liquid that blue chips. The « Value » philosophy aims to limit the downside risk of selected securities, through a so-called « margin of safety » approach.
The objective of the Taiko Japanese equities strategy is to achieve long-term capital growth by investing in listed Japanese companies. The strategy 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 strategy has a concentrated portfolio, typically holding between 20 and 30 different positions at any given time but with diversification across multiple sectors. The strategy invests in companies throughout the capitalisation range but not below JPY 20bn.
ASIAN PACIFIC EX JAPAN EQUITIES
Actively managed, the Bamboo strategy aims to generate consistent returns by investing in a portfolio of 25 to 35 stocks, companies driving economic growth across sectors with a focus in Greater China, India and ASEAN markets. Stock selection focuses on strong cash flow generation and sustainable dividend yield. The investment strategy relies on both top down asset allocation and bottom up analysis to build a concentrated portfolio. The investment team identifies growth themes across the investment universe and conducts research and invests in companies in specific sectors which will benefit from these growth themes. The portfolio management team focuses on original research and maintain a disciplined investment process, paying particular attention to corporate governance and ESG principles. The strategy aims to have low turnover and a strong risk management framework in order to deliver consistent and repeatable returns for investors.
The China strategy is an actively managed fund which aims to generate consistent returns by investing in a portfolio of 25 to 35 stocks of Chinese companies that will benefit from the growth of secular themes or disrupt existing sectors. Stock selection focuses on identifying the leaders in high potential sectors, primarily in healthcare, technology, consumer and industrials, with quality management and track record of execution. The investment strategy uses both top-down asset allocation to identify growth themes and bottom-up analysis to select leaders in order to build a concentrated portfolio of winners.
The management of the Cullen ESG US Value equities strategy has been delegated to Cullen Capital Management, a registered investment advisor based in New York. Established in 1983, Cullen Capital Management has 34 years of experience as a disciplined, experienced and research-driven value investment manager. Its established network provides it with strong access to company management teams. The objective of the strategy is to seek long-term capital appreciation through investments in equities of US companies across all market capitalizations, trading at valuation levels deemed attractive by the Sub-Investment Manager, meeting a minimum rating on MSCI’s proprietary ESG ranking system and having favourable environmental, social and governance (ESG) fundamental characteristics. The investment approach is active, bottom-up and driven by fundamental research.
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, QUAERO CAPITAL has also built an expertise in listed infrastructure investing by focusing on a liquid solution for a very defensive asset class. The objective of the Infrastructure (Listed) strategy is to create 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 the business cycle, high correlation to price indexes, diversification benefits for an equities portfolio and protection in difficult markets.
GLOBAL CLEAN ENERGY EQUITIES
The Accessible Clean Energy strategy aims at maximising total return by responsible investments globally along the clean energy value chain. The strategy provides access to a large and diverse set of industries via an active, long only listed equities strategy offering daily liquidity. The strategy invests in a concentrated portfolio of best in class clean energy generation, technology, transmission and efficiency companies while incorporating environmental, social and governance (ESG) criteria as part of the investment process.
Global Convertible Bonds
The objective of the Global Convertible Bonds strategy is to achieve a long-term capital gain by investing globally and without reference to any benchmark. The strategy aims at offering investors attractive risk-adjusted returns that are less correlated with the broader public markets through a real asymmetric profile. The investment approach is designed to offer a well-defined solution by anchoring the main characteristics of the portfolio in order to create a “brick” of convexity. Delivering convexity provides the potential for enhanced long-term returns in adequation with the necessity to preserve capital. The strategy has no geographical or sector allocation constraints, it invests in a portfolio of pure vanilla convertible bonds only (no options, credit or equity derivatives), currency exposure is fully hedged, weighted average credit rating is Investment Grade and average delta equity exposure to global equity is 50% at any given time. ESG considerations play a key role at the portfolio construction level, using internal ESG scores to influence portfolio weightings.
GLOBAL YIELD OPPORTUNITIES
The Yield Opportunities strategy invests in assets with attractive risk-adjusted yields across Bonds and Equity 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. The portfolio construction is the result of individual securities selections and is not managed 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.
GLOBAL CONSERVATIVE/BALANCED ALLOCATION
QUAERO CAPITAL offers two mixed asset strategies. These strategies each offer a specific risk return profile – conservative and balanced – to cater for investors’ specific investment profile. The asset allocation is the result of QUAERO CAPITAL’s global economic forecasts and funds are selected using both quantitative filters and a qualitative research process. Each of these strategies are available in several currencies.
The International Equities strategy aims at providing exposure to global equity markets. The asset allocation is the result of QUAERO CAPITAL’s global economic forecasts and funds are selected using both quantitative filters and a qualitative research process. This strategy is available in several currencies.