An Investment policy is an essential tool for an investment manager looking for consistent performance. SANTA FÉ’s policy is founded upon five steps:
I - Selection of Assets;
II - Implementation;
III - Monitoring and Control;
IV- Insurance and Low Volatility;
V- Asymmetrical expected returns.
I Selection of assets
We believe the best way to achieve consistency in investments is through a disciplined asset selection process.
Even with a low exposure to the stock market, we invest in socially responsible and sustainable companies practicing good corporate governance. Therefore, we prefer companies that comprise the ISE (Corporate Sustainability Index) created by BOVESPA.
Research: External Analysts;
Consensus:Construction of Portfolios;
From the theoretical portfolios, the Investment Committee and fund managers execute implementation:
- Broad evaluation of both the internal and the external political and economical scenarios;
- Market evaluation (Stock Market, FX, Interest Rates, Securities, Foreign Debt);
- Macro trades are defined for each market;
- The Investment Committee defines an allocation of risk per market (ex.: 50% of the risk will be allocated to interest rate, 25% to Stock Markets, 25% in FX);
- Following this risk allocation, managers structure the positions in accordance to each investment policy;
- Amongst our strategies, managers use technical analysis (Graphics) and Market Timing;
- The Investment Committee determines the stress scenarios used to calculate portfolio’s risk.
III Monitoring and Control
The BNY Mellon Serviços Financeiros DTVM is responsible for the SF Aquarius FIM LP Compliance;
Risk control is also implemented by the BNY Mellon Serviços Finaceiros DTVM S.A, as well as a strong internal control developed by our management team. (VaR and Stress Testing);
The Investment Committee analyzes all open trades on a weekly basis, which enables the decision-making as to whether maintain, increase or decrease the portfolio’s positions.
IV Insurance and Low Volatility
The directional trades have always some kind of insurance (hedge) to:
- Avoid losses in case of maximum stress;
- Serve as “balance” to reduce volatility;
Our confidence in the market defines the intensity and the form of the insurance.
V Asymmetrical expected returns
The final objective is to find the highest probability of positive returns and the lowest probability of losses..