Our investment approach is based on a few fundamental principles, which form the backbone of our activity.
Giving preference to consistency
Our first objective, to protect capital
It’s only possible to earn a superior performance over the long term through consistent results. Good management is thus above all cautious management which – while naturally seeking capital growth – aims primarily to limit downside risk.
Such a strategy is not only more reassuring for investors but also more remunerative over the longer term, taking into account the compounding effect of investment results.
Limiting downside risk
Preparing for the worst so as to be able to avoid it…
In asset management, losses are always difficult to recover. The ability to limit risks is thus just as important as the ability to obtain high performances.
But portfolio management does not necessarily have to be a zero-sum game, in which stock market crises cancel out the gains made during the previous positive years. On the contrary, today modern financial engineering offers advanced management techniques and sophisticated risk controlling tools. They make it possible to offer management with an asymmetric profile, which limits the risk of depreciation while offering an attractive potential to realize gains.
As long as it won’t be possible to foreknow the future, diversification will be necessary
One of the essential risk reduction principles implemented by DECALIA lies in a sound diversification of investments between different asset classes and securities. Likewise, DECALIA avoids an excessive concentration of assets. These two rules allow to significantly reduce exposure to a specific risk, as well as limiting the domino effect, all too often seen when investments are strongly correlated.
Adding value thanks to active management
Active management, with a pilot at the controls
Far from the current trend towards indexing, which leaves investors on their own to face the market, DECALIA shoulders its responsibilities as a manager with active management marked by strong convictions.
Hence, even though active management requires the drafting of a sound macro-economic scenario and high-quality fundamental analysis, it is the only form of management capable of adding value by detecting under- and over-valuations. And above all of protecting capital in the event of a sustained slide on the markets.
80% of a portfolio’s performance derives from asset allocation. In this respect, our hands-on experience of a wide variety of market conditions enables us to keep a cool head and take the necessary decisions calmly.
Enlisting the best talent
Our talent is also to find talent
This may seem obvious, but to obtain the best performances, you need the best managers.
Thus while DECALIA has certainly developed expertise in several essential asset classes, it also knows how to call on the best external skills whenever this can contribute added value.
Thanks to an extensive network of contacts and our great experience in manager selection, we have built up a specific know-how in identifying and analyzing the best talent, over a wide range of themes, styles and asset classes.