At Global Evolution, we have developed a unique investment process, based on our top-down approach to assess macroeconomic and political factors and a bottom-up process to determine the countries in which the portfolio will invest. The investment process has remained consistent through various market events and cycles for more than a decade. We generate investment ideas through a continuous exchange of ideas among members of our investment team and from collection and comprehensive analysis of data. The investment process has five core aspects:
Market Watch – Establish the overall portfolio risk profile in each of our strategies by analyzing global macroeconomic and political trends and market technicals to provide an overall framework for portfolio construction.
Country Watch – Analyze macroeconomic and political conditions in each of the 125 countries in our universe. We use our proprietary systems to monitor, document and support the ongoing analysis of each country from a detailed economic, political, currency, financial and demographic viewpoint. In this phase we form our view on each country's strategic long-term investment potential and look to determine dynamically improving countries by conducting a detailed country risk assessment, including in-depth country visits for detailed due diligence.
Relative Value – Determine relative value assessments among the various opportunities that might be available at any one time (inter- as well as intra-country) utilizing our proprietary relative value models.
Portfolio Construction – Analysis of the various factors to determine position sizes, includes proprietary risk reports, composition and liquidity in the market, regulatory as well as pre-defined/internal investment guidelines as some of the elements for portfolio construction.
Risk Management – A necessary element of any top-performing manager is a feedback loop that identifies the common set of factors driving risk and performance. Risk management analyses are conducted pre-trade as well as post trade.