Tailwinds |
Tailwinds
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Counterpoint Global believes that it may achieve value-added investment results more consistently through bottom-up analysis and qualitative judgment rather than top-down forecasting. Additionally, the team holds that optimal stock selection is primarily a function of making long-term investments in companies that stand to benefit from the shift to a more sustainable economy, while also benefiting from: inherent sustainable competitive advantages; brand-name recognition; the ability to redeploy capital at high rates of return; and strong free-cash-flow yield three to five years in the future. These characteristics, in the team's view, provide the potential for consistent long-term growth and competitive returns.
Aligned with Clients |
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Counterpoint Global’s long-term incentive compensation program requires investors to allocate a significant portion of deferred compensation into the portfolios they manage. |
CROSS-DISCIPLINARY THINKING AND RESEARCH INTO EMERGING THEMES |
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Their generalist approach and disruptive change research are unique in an industry that leans toward specialization. They promote cross-disciplinary thinking where investors follow areas with distinctly different business models. |
CULTURE |
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Counterpoint Global has a distinctive culture that encourages innovation, evolution and continued learning. |
EXPERIENCED AND STABLE TEAM |
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The team has been managing money since 1998. They have a long-term investment horizon that promotes perspective and insight. |
| 1 | Idea generation |
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Idea generation starts from the perspective of Sustainability, with eligible companies involved with business activities or market opportunities that align with a sustainability-related benefit to people (such as Economic Empowerment; Health; Access Democratization or Inclusive Communities), planet (such as Resource Efficiency or Downstream Efficiency) or systems (such as Data Security; Effective Institutions; Stakeholder Cultures or Structural Longtermism). |
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| 2 | Bottom-up analysis and valuation |
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Quality criteria includes durability of competitive advantage, distinctive company culture, growth and profitability optionality, while also emphasizing long-term secular changes and disruptive change and technology. Valuation focuses on a financials first analysis with impact internalization (an indication of intangible value and quality of business). |
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| 3 | Disruptive change research |
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To complement its in-depth, bottom-up research, the team's disruptive change researchers investigate big ideas and emerging themes that may have far-reaching consequences, such as artificial intelligence and blockchain. |
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| 4 | Consilient research |
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An additional complement to its analysis is the team's consilient researchers who investigate ideas and novel insights across disciplines for sharper decision-making. For example, the team leverages these researchers work and machine learning that groups similar businesses in a proprietary clustering tool that gives them a unique way to analyze divergence from the benchmark. |
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| 5 | Portfolio construction and implementation |
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The team's portfolios are actively managed and built to maximize expected value. Company weightings are primarily determined by the quality of the idea and the team's conviction. For Tailwinds, Thomas Kamei leads decision-making along with the investor responsible for a company. The team's goal is to construct a high active share portfolio with intentional exposures, rather than manage to a benchmark target. |
