The Fund seeks to capture medium to long-term (2-5 year) themes in a discretionary, fundamental and market neutral manner with the majority of returns being driven by idiosyncratic bespoke proprietary baskets of stocks with minimal company-specific risks. The strategy seeks to generate alpha on both the long and the short sides of the portfolio.
The investment philosophy focuses on the impact of long-term trends (economic, technological, demographic, social, regulatory, political and consumption) and the understanding of their second and third-order effects on markets and the economy. The portfolio is highly diversified across 20-30 themes with no beta to global equities and with stock-specific risk being mitigated through diversification. The deployment of capital across sectors and geographies is opportunistic.
- Fundamental, discretionary investing in global equities
- Captures medium to long-term (2-5 year) themes in a beta neutral manner
- Harness proprietary risk management and analytical resources to limit drawdowns
- Taking advantage of a ‘high hit rate’ and asymmetry
- Highly liquid; 95% can be liquidated in 3 days at 15% of average daily volume
- Strict discipline around net (+/ 20%) and gross (<300%) market exposure, beta neutrality
Consider and Identify Key Long-Term Trends
Develop the Investment Thesis Around the Themes
Deploy Investment Theme
The Thematic Equity Market Neutral team benefits largely from the communal architecture of the larger Fulcrum research team, leaning from time to time on macro researchers and the nowcasting team, while having a direct input from the CIO and the Chief Risk Officer.
Fawaz Chaudhry joined Fulcrum in 2017 and, as Head of Equities, is responsible for building the firm’s equity capability. A key member of the broader investment team, Fawaz is also the lead portfolio manager for the Fulcrum Thematic Equity Market Neutral Fund and Fulcrum Climate Change Fund. Prior to joining Fulcrum, Fawaz spent over fifteen years developing his long-term, thematic investment approach, including at Hadron Capital and Moore Capital.
If you have any questions, do contact us and we would be happy to have a chat.
Sign up to email subscriptions
We would like to share with you thought pieces, macro commentary and investment strategy research.