The Value creation
Our way to express the alignment of interests with our Clients
Valeur is committed to treat every single Clients with an “institutional approach”, offering the same professionalism, quality of relation and sophisticated solutions, tipically reserved to high profile counterparties only, such as banks or pension funds.
Valeur enjoys a privileged perspective for offering and structuring investment solutions in collaboration with international banks, therefore is able to screen and select the most distinctive ideas for each of the counterparties with whom is collaborating, to the benefit of our Clients.
In pursuing its objectives, Valeur applies a clear and structured investment philosophy, consolidated through more than 20 years of international experience, based on the specific operating principles.
A stable relation and direct communication with our Clients
The relation with our Clients is a binding priority for us, and it is reflected into a well-timed, transparent and direct communication of our investment decisions and orientation, as the prerequisite of a stable long-term partnership.
Performance is tipically measured by comparing portfolio returns with benchmarks (indices or securities). When the benchmark is outperformed, the performance may be positive in relative terms, but not necessarily in absolute terms. “Absolute return strategies“ target a positive performance, whatever the market conditions and trends. However, such expectation is often undeceived. Valeur runs a solid portfolio management process, carefully considering the volatility of returns, their actual and prospective correlation, as well as the frequency and severity of the drawdowns, in order to meet the expectation of a positive absolute return.
Experience and discipline
Our long standing experience and our tight discipline yield to an accurate process of analysis and investment. Our discipline, in particular, sets a major gap between a traditional approach (typically irrational and spontaneous, as represented by “Behavioural Finance theories”), and a rational and objective approach. Our process follows a rational and systematic scenario evaluation and investment opportunities are selected based on their actual risk-return profile.
In the recent past most if not all asset classes suffered high volatility for both technical reasons (e.g. delevereging, high correlation) and lack of transparency (e.g. the Madoff fraud). Financial engineering led to more and more complex instruments, producing an imbalance towards product sellers. Considered these dynamics, Valeur aims at investing exclusively in intelligible instruments, pursuing positive absolute returns in a linear and efficient way.
Asymmetric returns and capital preservation
The concept of risk is related to the level of risk aversion of investors and their return expectations: higher risks tend to yield higher returns and vice versa. On these assumptions, Valeur wealth management has two objectives: (a) maximize risk-adjusted returns, so as to achieve the highest return per unit of risk and (b) control volatility in order to obtain an asymmetric return distribution, increasing the probability of positive returns (so called “right skew”) and avoiding significant losses. Practically, Valeur diversifies its Clients’ portfolios with uncorrelated asset classes in order to maintain performance even during periods of market stress to limit potential losses and to contribute to capital preservation.
Valeur constantly monitors solution and transaction costs. Therefore:
- The best conditions are negotiated through direct dealing with the trading desk of some of the major international financial institutions;
- Investment opportunities are selected in order to implement an asset allocation decision, but avoiding to multiple layers of fees. In principle, we prefer passive instruments such as ETF’s, over actively managed solutions (e.g. actively managed investment funds)
- Costs , benefits and asset liquidity are systematically evaluated
- The application of transaction and management costs are carefully monitored (we typically prefer an “all-in fee” approach)
- Best deposit conditions are negotiated with banks, should it be our Clients’ preferred institutions of the ones recommended by Valeur
Innovation and intellectual curiosity
The constant dialogue with international counterparties, either within the financial industry, or within its network of entrepreneurs, allows Valeur to systematically evaluate innovative investment opportunities throughout several asset classes, offering a modern and wide perspective of markets and expressing responsiveness and adaptability to changes.
Rational and well informed investment decisions
Valeur has access to the research resources of some of the major financial institutions, obtaining high quality information, in-depth analysis and investment ideas across all asset class, that are selectively used as a support for the elaboration of its own perspectives and decisions.