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Our funds

Our investment capabilities

We manage actively according to a rigorous investment process that has stood the test of time. Our approach combines in-depth fundamental research and reliable quantitative tools. This allows our team to seize global opportunities wherever they arise and to meet our clients’ return expectations.

Fund range

GAMA FUNDS

Global Short-Dated Opportunities

Short-term bond fund for investors seeking a yield higher than that of money market funds over one year or more.

GAMA FUNDS

Global Bond Opportunities

Unconstrained global bond fund intended as a core fixed income holding for investors with a time horizon of three years or more.

GAMA FUNDS

Global High Yielding Opportunities

High-yielding global unconstrained fixed income fund for investors comfortable with the volatility of high-yield bonds and whose time horizon is three years or more.

The GAMA investment philosophy

We believe that harnessing the varying return opportunities created by ever-changing financial markets and generating consistent outperformance requires active opportunistic unconstrained strategies managed by a focused, highly experienced team which follows a rigorous investment process combining fundamental research and proprietary quantitative models.


The GAMA investment philosophy

We believe that harnessing the varying return opportunities created by ever-changing financial markets and generating consistent outperformance requires active opportunistic unconstrained strategies managed by a focused, highly experienced team which follows a rigorous investment process combining fundamental research and proprietary quantitative models.


Portfolio construction in five steps

Our investment process is structured in three phases. We begin by formulating our active investment strategy. We then implement it in all products through a five-step portfolio construction sequence. Finally, we use our risk management expertise to control each portfolio’s risk.


Strategy generation

Fundamental analysis is the starting point of our strategy generation. At the macro level, we assess the extent to which consensus expectations for growth and inflation are priced in by financial markets. We also look closely at monetary policy. At the micro level, we assess company fundamentals. In addition to fundamentals, we also look at the signals provided by our proprietary quantitative models. These simple and robust models provide us with insights that are independent of investor consensus. By combining fundamental and quantitative analysis, we leverage the strengths of each.

Fundamental analysis


Macro

  • Growth & inflation expectations
  • Monetary and fiscal policy

Micro

  • Business model
  • Financial analysis
  • Governance
  • Covenants
  • Sustainability
  • Liquidity

Quantitative models


Quantitative signals

  • Valuation
  • Momentum
  • Carry
  • Positioning

Portfolio construction in five steps


1. Strategic asset allocation

Weighting of a diversified mix of fixed income segments to meet the client’s long-run objectives


2. Tactical asset allocation

Tactical change of the strategic weights in accordance with our investment strategy


3. Security selection

Selection of the security according to the issuer, structure, currency, maturity, liquidity, etc.


4. Dynamic management of portfolio exposures

Adjusting portfolio exposures through derivatives to limit downside risk and take advantage of short-term opportunities


5. Currency management

Management of currency exposures according to our investment views in the context of the overall portfolio risk


Security selection

Individual security selection involves choosing the single bonds that make up the portfolio according to criteria such as the issuer, maturity, currency, capital structure and liquidity. We assess each issuer’s fundamentals, particularly its ability to generate profits, to control leverage and to maintain sufficient liquidity. We place great emphasis on qualitative elements such as the sustainability of the business model and ESG factors, especially the quality of governance.

Once a bond has been added into the portfolio, our investment discipline dictates profit-taking when it no longer offers an attractive yield. We then replace it with another security boasting a better risk-return profile. When a bond underperforms, we determine whether credit fundamentals are still adequate. In the event they have deteriorated, we reduce or sell the position.

Security selection

Individual security selection involves choosing the single bonds that make up the portfolio according to criteria such as the issuer, maturity, currency, capital structure and liquidity. We assess each issuer’s fundamentals, particularly its ability to generate profits, to control leverage and to maintain sufficient liquidity. We place great emphasis on qualitative elements such as the sustainability of the business model and ESG factors, especially the quality of governance.

Once a bond has been added into the portfolio, our investment discipline dictates profit-taking when it no longer offers an attractive yield. We then replace it with another security boasting a better risk-return profile. When a bond underperforms, we determine whether credit fundamentals are still adequate. In the event they have deteriorated, we reduce or sell the position.


Risk management

We believe that sound risk management must be integrated into the investment process and combine several complementary levels. Before we initiate a position, we establish a trading plan with take-profit and stop-loss levels. Risk budgeting allows us to size each position so as to match the portfolio’s overall risk level and our degree of conviction in the trade.

At the portfolio level, the risk breakdown gives us an overview of the various exposures and of the correlation between them, in particular the interest rate, credit and currency exposures. Lastly, regular interaction with our external risk management consultant allows us to stress-test our ideas and to ensure we keep abreast of the latest academic developments.