Investing in the European markets, the fund's strategy draws its inspiration from the techniques used by the best managers, the “Investment Gurus”, who have set themselves apart by demonstrating recurring robust performance over decades. Based on fundamental analysis, the method evaluates the strength of each company in addition to the attractiveness of its price, with the aim of delivering long-term investment performance.
Following the tradition of this investment philosophy, the fund's strategy fits into a simple and commonsense framework. It distances itself from equity strategies that use overly complex models: in-depth company analysis can be built on a few simple and well chosen criteria.
The strategy used by the fund is based on three questions that must be answered before an investment is made: 1) is the company profitable? 2) does it enjoy good prospects? and 3) is the share price attractive? In addition the efficiency of the strategy, its main advantage is transparency.
The strategy combines simplicity and discipline in selecting the shares. To answer the three questions, the strategy uses carefully selected financial ratios that are both relevant and complementary. Once these ratios have been defined, the strategy adheres to them and allocation is made in a quantitative and systematic way, thus avoiding any change in the investment philosophy.
The strategy selects the shares in a totally transparent and verifiable way. Furthermore, the components of the strategy's portfolio are accessible at any time to the fund's investors.
The strategy's portfolio is reviewed monthly and is composed of an average of 120 European companies. In very volatile markets, which are often bearish, the strategy can reduce its exposure to equities aiming to mitigate downside risk.
The strategy used by Harewood Quant' Guru Europe Equity FCP is implemented within the BNP Paribas GURU Equity Europe Long Total Return strategy index (Bloomberg Code: BNPGELTR Index) to which the FCP is indexed.
Harewood Asset Management is an investment management company, 100% owned by BNP Paribas. Established in 2004, Harewood AM combines its asset management expertise with the skills of BNP Paribas' Corporate and Investment Bank (CIB). Harewood Asset Management distinguishes itself through innovative solutions capitalizing on CIB's expertise in: quantitative management, option-based strategies and derivative assets from market activities such as volatility, correlation and dividends.
This capacity for innovation has recently been rewarded by the “Prix de l'Innovation des Placements Financiers La Tribune – SGSS 2009”.
About BNP Paribas Corporate and Investment Banking
BNP Paribas Corporate and Investment banking division (http://cib.bnpparibas.com/) has almost 16,000 employees, deployed in 53 countries around the world. BNP Paribas CIB excels in three fundamental sectors in particular:
Derivatives - it is one of the leading global players in rates, credit, forex, commodity and equity derivatives
Capital markets - it is amongst the top ten Euro houses for both ECM and DCM (bond issues, securitization, convertibles and shares).
Structured finance - it is amongst the world leaders for acquisition, export, project and commodity finance.