Lionguard Market Neutral Strategy
The LionGuard Market Neutral Strategy has the objective to achieve positive absolute returns through disciplined investing across North American equities. The strategy invests on a market neutral basis and intends to achieve positive upside market capture and negative downside market capture.
- Net Annualized Return 6.49%
- Downside Capture Ratio -15%
- Average Net Long 1%
- Sharpe Ratio 1.11
- Investment Process
- Risk Management
Market Neutral Equities
Small & Mid Cap
Absolute Return Strategy
Our investment process includes the following steps:
1. Fundamental Research & Analysis
We conduct detailed fundamental research and analysis on companies before they are included in the portfolio.
2. Calculation of Intrinsic Value
With the help of our internally built financial models, we compute the intrinsic value of the business.
3. Risk Management Analysis
We identify and quantify risks that have an impact on the intrinsic value of the business.
4. Portfolio Construction Considerations
We build our portfolio using a bottom-up stock selection approach by adding one company at a time.
5. Monitoring, Re-balancing, Exiting
We monitor all positions in the portfolio and incorporate all relevant new information in our analysis and decision-making.
Our risk management process includes the following steps:
1. Focus on Capital Preservation
We invest in high quality companies that fall within our circle of competence.
2. Minimize Risk of Changes in Fundamental Characteristics
We minimize this risk by conducting detailed fundamental research and analysis.
3. Manage Single Risk Factor Exposures
We monitor and manage single risk factor exposures within the portfolio.
4. Manage Single Name Exposures
We actively monitor the size of each position in the portfolio in relation to the level of confidence in our investment thesis.
5. Monitoring & Analysis
We monitor other relevant risks and conduct risk management meetings on a regular basis.