Investment Process

Understanding how our philosophy and processes set us apart

Investment Philosophy

Global Evolution believes there is greater value to be found in the less advanced countries of the world that compromise the emerging and frontier markets. 
We treat emerging and frontier markets as an ever-developing landscape constantly looking for new and evolving stories in order to identify sovereign and company investments delivering high risk-adjusted return.

We strive to deliver alpha by being ahead of the curve in identifying these global evolving stories and assisting early stage market development where necessary.

We believe returns are less correlated than in more established markets because of the huge diversity and idiosyncratic nature of new evolving stories and the underdevelopment of their markets.

We wish to use our influence to be positively impactful, not least in terms of lifting the living standards of the world’s poorest communities.

Investment Objective

Global Evolution’s investment objective is to deliver an attractive and less correlated return stream in excess of benchmarks’ by constantly investing into opportunities of high risk-adjusted returns in dynamically improving emerging and frontier sovereigns and companies globally.

Investment Process

 

Sovereign Investment Process

We generate investment decisions through a continuous exchange of ideas among investment team members and a unique investment process involving top-down macro dynamics and global investment themes and a bottom-up process to determine country fundamentals and relative value via comprehensive data modelling and analysis.

Corporate Investment Process

The investment process combines the top-down macroeconomic views with thorough bottom up credit research via the portfolio construction. In addition, risk management is the integral part to the investment process. Strategies are built from top-down targeting certain credit beta, duration, curve positioning, country risk and sector exposure. The target structure is then achieved through a bottom up investing into the instruments carefully selected on a risk-adjusted basis via issuer research and assessment. While the investment research focusses on generating risk-adjusted investment ideas, the portfolio construction process aims at extracting maximum value from security selection. Overall, the strategy targets generating most of alpha from credit selection.

Investment Approach

Global Evolution’s investment approach utilizes active risk management, is team-oriented, disciplined, conviction-based, and combines top-down and bottom-up analysis to identify attractive investment opportunities in sovereigns and companies across emerging and frontier markets.

We use a top-down approach to exploit opportunities arising from macro dynamics and global investment themes and a bottom-up approach to identify dynamically improving investment opportunities.

The investment management team is empowered by unique proprietary systems to facilitate fast and thorough comparative research, risk and portfolio analysis across our wide investment universe.

We leverage the extensive knowledge and experience of our investment professionals across our four global offices in a coordinated fashion.

The Investment Process Explained in Less than 3 min.: