At Macromoney we look at things from different perspectives, therefore we seek to achieve risk adjusted returns combining a quantitative macroeconomic approach with rigorous fundamental research.

Investment Philosophy

The history of philosophy has been substantially marked by two schools of thought: Plato with his focus on the world of universal ideas in contrast to Aristotle with his attention to the science of the real things.

Macromoney investment philosophy, inspired by these different, nevertheless for us, complementary perspectives, implements a twofold comprehensive approach:      

  • the top-down approach through macroeconomic analysis gives the main direction to allocate funds between asset classes;

  • the bottom-up approach is the study of the firm’s financial statements, management, products and the market environment to find undervalued stocks.

Our philosophy, always managing risk above all else, accepts a certain grade of short term market volatility as a necessary measure to achieve a consistent and higher return in the long term. Striving for transparency we rely just on securities and options listed on the main stock exchanges.

Investment Process

The investment process is twofold:

  • it starts with a quantitative approach to analyse long-term sets of macroeconomic data. In this way, we evaluate macroeconomic trends to find signs of turning points in the business cycle. Based on these signs we build proprietary models to allocate funds between different asset classes;

  • we then explore these macroeconomic trends through a bottom-up approach to choose particular assets within the selected asset classes.

Our belief is that alpha may only be generated from extensive research and independent thinking. Hence, we are convinced that the internet community of financial professionals, research firms and industry specialists is an incredible source of investment ideas. These different sources condense a considerable amount of innovative investment opportunities that allow us to constantly question commonly accepted hypotheses in order to seize opportunities hidden off the beaten track.

Risk Management

Macromoney risk management sensibility began since its inception with the decision to rely on a solid support provided by trustworthy, independent and well known service providers based between the United States and Europe. The choice of outsourcing most of the fund administration, from accounting to legal services, is driven by the willingness of showing the highest grade of transparency and consistency to our most important assets, our clients.

Our risk management system is based on a structured, disciplined and risk savvy deployment of capitals:

  • the portfolio is analysed daily and the relative positions in the market are adjusted as needed to decrease the overall portfolio risk exposure;

  • we employ strictly quantified loss peak for both our equity and options portfolio, which can help to curb the program from mounting large losses;

  • the short term risk strategy is focused on hedging market risk through the use of tactical instruments based mainly on volatility products;

  • the long term risk strategy is focused on protecting capital during volatile markets, applying strategies based on a mix of volatility and options products by aggregating them with fixed income securities and long/short equity strategies