Business Situation
A European multifamily office wanted to construct a long-only certificate product focused on Latin America (LATAM). The client sought a research partner with deep expertise across asset classes, strong knowledge of LATAM macroeconomics, and a modern, end-to-end approach toward investment research.
The solution delivered ongoing investment decision intelligence powered by augmented analytics to help the portfolio consistently outperform benchmarks. The engagement focused on:
- Automated screening and fitment monitoring based on qualitative and quantitative parameters.
- Real-time updates on economies, sectors, companies, and peers.
- Artificial intelligence (AI)-powered investment research creation.
SGA Approach
- Portfolio Construction and Initiation: Designed and deployed an automated, quantamental screener to create a portfolio of 75 investible companies.
- Actionable Research: Provided call-to-action via deep-dive research based on fundamental analysis and multiple techniques for sector-specific valuation.
- Proactive Tracking & Monitoring: Leveraged tech tools to generate intelligence through data activation using pricing analysis, event monitoring, regulatory developments, etc., to highlight potential churn/expansion ideas and maximize alpha.
- BI Visualization of Macroeconomic Indicators: Transformed the reporting process of macroeconomic key performance indicators (KPIs) across major LATAM economies from manually prepared and updated Excel files to Tableau-based, auto-published, final-form Adobe PDFs that sped up top-down decision-making.
Key Takeways
- Enhanced Alpha: For five years, the portfolio consistently surpassed annual benchmark returns by at least four percentage points in both bull and bear phases.
- Increased Compliance: Achieved 30% quicker churn of stocks not aligned with in-house investment mandate and philosophy, compared to an entirely manual process.
