Communication and research - Portfolio managers and analysts regularly participate in our First Hour Meeting, attend in-house company forums, and seek to speak with the management of companies around the world.
Analyst-managed strategies - These approaches aim to implement deep proprietary research, long-term perspective, specialized knowledge, multidisciplinary insights, and stock-picking skills. Analysts often have acute risk awareness of their industry and sector.
Naotsune Alliance has constantly provided insights and investment solutions derived from quantitative tools and techniques. Today, our quantitative investment strategies allow us to manage our clients’ assets in a variety of styles, including emerging market, low volatility, small cap, and alternative strategies.
According to our experience and research, certain factors have been historically associated with equity market outperformance. Furthermore, by being empirically solid and consistent across time and geographies, the technicalities behind these factors can be defined as a combination of behavioral inefficiencies, risky premiums and market structure. Our innovative approach is based on our quantitative investing instruments and methodologies, which are vitally important for identifying and systematically exploiting these repetitive market characteristics.
Differentiated features - By applying targeted factor weightings for different stocks we have identified the fact that companies with a higher level of valuation uncertainty have shares that are more sensitive to investor sentiment. In the same time, stocks that present a low degree of valuation uncertainty are more sensitive to indexed valuation rates and discounted cash-flow models.
Alpha interdisciplinary research capabilities - We believe our quantitative equity investors benefit from the breadth of Naotsune Alliance’s research platforms. Collaboration between the global, asset allocation, derivatives, and fundamental research teams encourages innovation and helps to challenge and validate our alpha business models.
Comprehensive risk-management - Most risk models, ours included, assign risk attributes to each stock and predicts how combinations of stocks may contribute to overall portfolio risk. However, our model goes several steps further.
Proprietary portfolio development - We built our research and portfolio management infrastructure to allow for complete transparency in the sources of risk, costs, and returns that drive portfolio construction decisions.
Our methodology, when implementing strategies and providing investment solutions through our global equity specialists, includes the application of our alpha engines and proprietary risk-management framework in all areas of the financial market, thus ensuring that our main goal of addressing our clients’ needs is achieved through a quantitative approach.
Examples of where we put quantitative analysis to work:
- Emerging-market equities: Undervalued market segments with large universes
- Low-volatility solutions: Leveraging risk is centered in portfolio construction
- Alternative strategies: Models of excess return potential developed outside of the conventional long-term approach
Customized equity strategies
Our technical analysis of the securities’ supply-demand dynamic, is based on the premises that the prices themselves are the first set of vital information and experienced advisors can easily help clients discern positive flows of capital from negative ones. However, our methods and approaches reframe these reference points in accordance with client demand, customizing their portfolios. To put things into a perspective, flows may be manifested in directional price trends over time. However, our analytical techniques shed light on observable patterns of accumulation, distribution, and relative strength when churning out market projections, with the purpose of improving our engagement with a certain security or sector.
Unique approach and seasoned team
We believe the identification of — and participation in — persistent patterns of positive price trends help support capital growth, while the recognition of negative price trends serves as a reliable form of risk control.
Our Research and Analysis Team is comprised of experienced technical analysts. The team’s independent thought process, combined with the strength and depth of Naotsune Alliance’s resources, are its strengths and distinguishing features.
Fixed income solutions
Whether an investor is seeking a broad-market solution or strategies based on more specific duration, geographic, or sector parameters, we have the resources to help meet the need.
Strategic features of our approach
Independent, empowered, and accountable teams. Each specialist team is independent and empowered to make decisions for investors’ portfolios. Their distinct approaches help to diversify return sources and potentially generate more consistent performance across market environments.
Expertise spanning sectors, asset classes, and investment disciplines. Our strategies are supported by the firm’s uncommon breadth, depth, and integration of investment capabilities across equity, credit, commodity, and currency markets and our proprietary fundamental, quantitative, technical, and macroeconomic research.
Collaboration among specialists - Dedicated teams of specialized fixed income investment professionals generate insights within every major sector and region. These teams are incented to collaborate with each other and with portfolio managers across the firm to identify opportunities and risks.
Strategic risk management and portfolio construction - Proprietary quantitative tools for building portfolios, managing risks and assessing liquidity support consistency of performance.
Our sophisticated proprietary tools for building portfolios and managing risk:
- Interactive Exposure Evaluation - market exposures are monitored in real time by country, currency, sector, credit quality, and duration range, in both absolute and benchmark-relative terms.
- Liquidity Status Confirmation - regular market check-points for estimating a portfolio’s liquidity status.
- Fixed income Risk Check - comprehensive risk statistics and projections at portfolio, market, and individual security levels.
A full spectrum of fixed income solutions
We secure informational input through multidisciplinary research based on countries, sectors of activity and individual securities, as our solutions run the full gamut of the world’s fixed income opportunities. Our approaches are built around geographic, time-frame and credit-risk indicators, in order to match the various set of objectives set-forth by our investors.
Our Global Multi-Asset Strategy team partners with clients to address investment challenges through creative multi-asset research, specialized guidance, and innovative investment solutions.
Differentiated features - Our research methodology provides the premises of a successful entrepreneurial environment that encourages our investors to follow our market guidance and portfolio construction philosophy meant to address their needs. We create macro frameworks that help us identify potential opportunities at a given point in time, and then we explore those opportunities from all angles.
Our Global Multi-Asset Strategy team utilizes deeply assimilated experience when conducting every research project. Our portfolio managers and strategists bring a consistent baggage of expertise, averaging close to two decades of experience individually. Prior to joining Naotsune Alliance they have built their reputations in various research related positions at a range of major institutions. Our research capabilities benefit from the breadth and depth of our experts, ranging from global industry analysts and regional macro-analysts to credit analysts and industry researchers. We actively share our research with clients through seminars, digital means and white papers.
Guidance - We partner with a wide variety of clients, from corporate and public pensions to endowments and foundations, to help solve investment problems. We engage in a dialogue, asking questions to gauge clients’ needs:
- What is their investment objective?
- How do they define risk?
- What is their current strategic policy mix?
Then we collaborate to elaborate and identify the most suitable investment strategy, adjusting it as needed over time and incorporating timely risk monitoring and management.
Strategy - We establish every strategic approach with our client’s goals in mind as we set out the appropriate course of action for optimal portfolio construction. Our analysis spans different investment dimensions due to the fact that we systematically take into account a range of management disciplines based on fundamental, macro, quantitative, and technical indexes. We coordinate and corroborate multiple sources of alpha, such as strategic and tactical asset allocation input from all team members, in the portfolios we manage in order to ensure efficient assistance for every individual.
In addition, we develop asset allocation frameworks that we believe reflect the changing regulatory environment and evolving capital market opportunities, including solutions for rising-inflation regimes which are built into equity portfolios.