ADÉQUATION FINANCE has developed a specific methodology applied to equity multi-management: “historical tracking”.

This methodology relies on the following fundamental principles:

• Technical analysis on funds’ track record in a variety of market conditions to identify and model the funds’ intrinsic characteristics
• 100% invested at all times to optimize performance in all market cycles
• Select and allocate funds combining quant and judgmental factors

We have set up a number of proprietary models and tools that structure our screening process and enable us to identify the best-performing funds as well as the most talented fund managers.

Through quant analysis on the funds’ track record, we intend to model the funds’ profile so as to get the best possible grasp of their intrinsic characteristics. We subsequently rank them and break them down into sub-categories according to their performance, volatility and overall investment profile.

Only the funds that are managed in a consistent way over time and simultaneously meet our investment criteria of return and volatility are actually shortlisted.
The shortlist comprises our restricted investment universe which we closely monitor on a continuous basis.

We run the restricted fund selection through a number of quant models for thorough screening and we then focus on more qualitative parameters which complement the technical analysis, such as the fund manager’s experience, his investment and decision-making process or the investment team as a whole. We also make sure we get insight into the funds’ main holdings for instance for diversification purposes.

All these factors are key for us to invest into a fund.

Within our portfolios, each fund is assigned a specific objective in order to achieve the right balance and optimize the risk/return ratio.

Investment objective

Our investment objective is to outperform the benchmark on a medium to long term horizon while keeping volatility in check.