Equity approach
You shouldn’t have to worry about missing out on financial gain due to impersonal investing. We customize our strategies to match your objectives, risk tolerance, liquidity requirements, and marginal tax rates to optimize your total return. Our strategies can be used either to create a stand-alone portfolio or as an overlay to your fixed-income portfolio already managed by SAC.
Our global strategies take advantage of international equity and sovereign debt markets by using our global “top-down” view of and “bottom-up” approach to debt and equity analysis.
Our goal with the enhanced fixed income strategy is to provide stable income, principal protection, and an opportunity for long-term capital appreciation. The strategy allows you to diversify your portfolios into high-quality fixed income, international equities, commodities, and forex of investment opportunities all over the world.
The enhanced fixed income equity approach:
- Diversifies your portfolios by opening up the equity universe of stocks globally, allowing you to gaining exposure to companies and industries not represented in the US markets.
Provides a high degree of liquidity with an asset allocation weighted in high quality securities. - Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.
Investment Philosophy
Our top-down duration management is maintained within a band relative to the benchmark. Decision-making points that determine band optimization are based on
- Key macroeconomic data
- Socio-political issues
- Fundamental research reviewing credit rating sector reports
- Supply and demand analysis
These factors are combined with your guidelines, diversification requirements, and portfolio benchmarks.
Our senior portfolio managers actively manage bottom-up yield curve exposure using quantitative swap models based on the criteria below in the context of our top-down view.
- Historical yield spread relations
- Relative value
- Credit worthiness
- Potential price and income appreciation of a particular sector and index
Risk-Management Strategy
Using a forward-looking approach, we identify, analyze, quantify, and prioritize the types of risk affecting portfolio investments across four dimensions: bottom-up, core, tail and liquidity risk.
To do this, we:
- Diversify across multiple risk factors. We identify the acceptable level of risk you’re willing to undertake to achieve a certain level of return and target return contribution.
- Focus on risk factors, not just asset classes. After identifying where we are within the risk cycle, seek asset classes that provide more upside or help to avoid or control downside volatility within the cycle.
- Analyze correlations and active risk for impact of market movements on portfolio risk targets.
- Use tactical indicators to capture sentiment and turning points.
- Add uncorrelated or negatively correlated assets as diversifiers during downturns, i.e., TIPS, cash, gold, and other commodities.
Testimonials
