Absolute Return Strategies
The objective of many investors today is to achieve a positive return in absolute terms year after year regardless of the market environment. Absolute return strategies have the requisite flexibility to profit from both declining and advancing markets. And that adds stability to your portfolio.
Investment Case Global Macro
Positive returns, regardless of what direction the market is moving
Many investors want to achieve consistently positive returns on their investments from one year to the next. That may seem a rather modest goal but it is definitely challenging in an age of negative interest rates. It used to be that government bonds produced a reliable and attractive flow of income but now many of the bonds issued by Western governments are trading on a negative yield. Investors apparently have no choice but to invest in stocks if they want a positive return on their investments.
Direct exposure to equities is not suitable for every investor, however, given the higher risks that entails. Absolute return strategies within a UCITS fund vehicle are a viable alternative for investors with conservative investment styles and profiles. The BB Global Macro (Lux) Fund has consistently achieved attractive returns across very divergent market environments.
A flexible, market-neutral, multi-asset portfolio with a high degree of stability
BB Global Macro is not bound by a specific benchmark. This gives its managers considerable latitude as to how they manage the market-neutral portfolio, consisting of 25% equities and 75% fixed income. They can seek out the most promising stock and bond markets around the world and can also short individual markets depending on the market situation. A generally conservative positioning has been maintained for the fund's market-neutral multi-asset portfolio along with a high degree of stability. Furthermore, with today’s low interest rates, leverage can be added to the portfolio at low cost. Typically limited to a range of 20-50%, adding leverage to the portfolio can boost annual returns by 1 to 2 percentage points. Equities, global government bonds, foreign exchange and commodities are the building blocks that are used to create the fund's flexible multi-asset portfolio.
Asset allocation supported by a proprietary risk engine
Risk management constitutes an integral part and determinant of the overall investment process. Bellevue has developed a proprietary risk management software program and various quantitative models have been integrated into this «risk engine». The investment universe is large. The software analyzes stocks listed in more than 50 countries and bonds denominated in ten currencies. The portfolio management team identifies investment ideas that are congruent with a specific risk profile. These are then simulated in the risk model to determine their impact on existing portfolio positions. Portfolio risk is kept constant over time by adhering to and monitoring explicit daily risk levels. There are also clear guidelines regarding portfolio diversification.
One particular challenge associated with a global investment approach across multiple asset classes is the sheer size of the investment universe. Our team of experts has a profound understanding of bond and stock markets and it can also turn to a 25-strong investment team for specific inputs, especially on equities. These experts were actively involved in the development of the risk management tool and they have been instrumental in its ongoing optimization.
Team Absolute Return
Lucio Soso, Lead Portfolio Manager
- Since 2010 with Bellevue Asset Management as senior portfolio manager
- 2004 - 2010 Risk manager and global macro portfolio manager, RBR Capital AG
- 1998 - 2004 Consultant in risk management, research database and portfolio management systems, Orwellsys SA
- 1995 - 1998 Director of financial research, All Asia Capital
- 1992 - 1995 Institutional portfolio manager, Pictet et Cie
- Master’s degree in Finance (London Business School), Nuclear Physics (Tokyo Institute of Technology) and Electrical Engineering (ETH Zurich)
Alexandrine Jaecklin, Portfolio Manager
- Since 2015 with Bellevue Asset Management as Senior Portfolio Manager in charge of the bond selection
- 2011-2015 investment specialist for Ultra High Net Worth clients with focus on bond markets at UBS Wealth Management, Zürich
- 2008-2011 Active Portfolio Advisory with focus on bond markets at UBS Wealth Management, Zürich
- 2003-2007 Research analyst covering European Financial Credits at UBS Wealth Management, Zürich
- 1997-2003 Financial and Credit analyst in New York and London
- Master in International Relations, Economic Section, from Graduate Institute of International Studies (HEI), Geneva
Markus Peter, Head Investment & Products
- Since 2009 with Bellevue Asset Management as head investments and products
- 2000 - 2009 Julius Baer Asset Management in various functions including head product management & development, investment advisory as well as a product specialist
- 1995 - 2000 IBM, treasury and specialty financing
- 1990 - 1995 Swiss Bank Union, equity and equity derivative trading
- Master’s degree in Business Economics, University of St. Gallen (HSG)
Our investment solutions
With the BB Global Macro fund we offer a UCITS-regulated investment fund with daily liquidity, which combines the positive properties of the alternative world with the advantages of the traditional world in one product .
BB Global Macro (Lux)
Markets & Opinions / 23.07.2019
Recording of the Call with Markus Peter and Lucio Soso on July 23.
Markets & Opinions / 27.10.2016
BB Global Macro is producing stellar returns. A recommendation from Citywire.
Markets & Opinions / 22.09.2016
Recording of the WebEx Call with Portfolio Manager Lucio Soso from September 21, 2016.
Markets & Opinions / 10.08.2016
Portfolio Manager Lucio Soso interviewed by Citywire.
Markets & Opinions / 25.05.2016
Bellevue experts about the current market environment.