Equities investments are amongst investors favourite tools to generate growth and performance in their portfolios.
Our long-standing expertise in equity investment solutions has enabled us to develop a broad range of strategies, from long-only stock-picking, or single and multi factor investments to long-short, ESG or income orientated strategies, we aim to make the most of the asset class and cover all types of risk and diversification profiles.
High Conviction Strategies
Over the last century, some of the best and well-known asset managers – the financial markets “Gurus” – have learnt a great deal about how (and how not) to successfully invest in equities over the long-term.
Investment Gurus such as Warren Buffett or Peter Lynch have delivered high consistent performance over a long term period, thanks to investment principles based on economic common sense.
Inspired by their success, BNP Paribas has launched in 2008 an investment methodology directly linked to the Gurus’ approaches.
We call this strategy the GURU® strategy.
The GURU® strategy has been driving the GURU® Funds since the launch date of the first fund in 2009. It is available in World, Europe, Eurozone, US, and Long/Short versions.
The Funds seek to achieve long term growth by investing in a selection of the largest listed companies in each fund’s own geographical universe. The selection process follows a rules-based, fundamental analysis and aims to identify investment candidates with the best economic profiles in each geographical universe.
“Its far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Warren Buffet
“A good business generates more cash than it consumes [..] Virtually certain to grow in value.” Benjamin Graham
“What makes a company more valuable tomorrow than it is today always comes down to earnings and assets. Especially earnings.” Peter Lynch
For the investors who wish to combine the features of all equity factors, we created the DEFI (Diversified Equity Factor Investing) funds range. These funds maintain an equal risk allocation to each of the 4 core equity factors, in addition to beta and tracking error controls with respect to market cap indices.
DEFI is available in European, Eurozone, US, World and Market Neutral versions.
THEAM Quant Sustainable offer ambition is to track global benchmark series through a systematic approach integrating financial criteria and robust ESG framework, controversies and disputable activities monitoring, while focusing on Sustainable themes. Our SRI strategies are Climate Care, Climate Care Protection 90%, Europe Climate Carbon Offset Plan, World Climate Carbon Offset Plan and Global Goals.
Single Factor Strategies
Operating in liquid European or US markets, our single-factor ETFs, launched in 2016 and 2017, enable more active managers to be invested in the factors they want to be exposed to and from which they wish to benefit.
For more details, please check the product pages which are accessible through the table at the bottom of this page.
Income and Defensive Strategies
Equity Income Defensive
In the current environment of persistently low interest rates, investors are struggling to find acceptable levels of return for their investments. The hunt for yield has typically been synonymous with an increased degree of risk which, for many investors, is often unacceptable.
BNP Paribas has developed an investment strategy which uses a rules-based method to select highly liquid non-financial companies. These are selected based on an analysis of their ability to pay high, recurring and sustainable dividends.
The objective of the THEAM Quant – Equity Income Defensive fund is to provide income and capital growth by being exposed to a basket of high-dividend equities and by implementing a systematic options strategy which aims at generating additional income and reducing risk. The strategy is available in a Eurozone version.
Equity Factor Defensive
Equity Factor Defensive combines a diversified investment into the main factors driving equity returns with a protection overlay.
The fund is a risk-balanced portfolio composed of four core equity factors – momentum, quality, low volatility and value – aiming to provide capital growth by being exposed to a basket of equities and by implementing a systematic options strategy which aims at reducing risk by minimizing volatility.
This strategy is available in European, Eurozone and US versions.
Volatility Dynamic Carry
The THEAM Quant – Dynamic Volatility Carry fund seeks to provide long volatility exposure during pronounced market stress scenarios, while exhibiting positive carry. The Fund is for qualified investors seeking an agile and efficient defensive solution that does not drag on portfolio returns. The Fund strategy is implemented systematically, and offers and optimized way of getting long exposure to VIX futures, while keeping a positive carry cost on the long run.
Europe Target Premium
The Europe Target Premium fund seeks to provide income and capital growth by implementing a dynamic option strategy on the Euro Stoxx 50 Index which aims at generating income in bullish and moderately bearish markets, with a risk-reduction approach.
US Premium Income
The US Premium Income fund seeks provide income and capital growth by implementing a systematic option strategy on a selection of US equities which aims at generating income in bullish and moderately bearish markets. The fund targets an income of 3% per year above USD short term interest rate, the achievement of this target is not guaranteed.
Equity GURU® Long/Short
The THEAM Quant Equity GURU® Long Short Fund aims to increase the value of its assets over the medium term by being exposed to a diversified long/short equity basket, the components of which are chosen using a systematic selection method (the GURU® strategy) based on a fundamental analysis of companies.
DEFI Market Neutral
For the more directional risk averse profiles who seek stable returns in various market conditions, we created DEFI Market Neutral.
The objective of the fund is to increase the value of its assets over the medium term by being exposed to a leveraged long/short dynamic basket of equities and futures listed on worldwide markets or operating on these markets, the components of which are chosen using a systematic selection method based on a fundamental analysis of companies.
This fund takes a long exposure to the four core equity factors, as well as short positions in regional market indices (S&P 500, EURO STOXX 50 and Nikkei 225). The weights of each exposure are adjusted in order to neutralise the aggregate beta versus the MSCI World Index.