Quantitative analysis is based on a series of performance and risk indicators which are constantly monitored and assessed:
In order to select from the realm of managers, a proprietary database has been created with the support of Morningstar and Bloomberg. More than 500 asset management companies are being followed, totalling more than 7.000 equity funds.
The data relative to each fund are grouped on the basis of homogeneous categories (peers) which are created by taking into account the following guidelines:
- geographic area of reference
- capitalization of the companies subject to investment
- management style (value, growth, or blend)
- hedging policies on fixed
Risk indicators (tracking error volatility, beta, information ratio, r square, upside and downside capture ratio, etc.)
The qualitative analysis process is composed of four phases:
Identification of the fund
By analyzing the information made available by asset management companies, the fundamental investment themes are identified, particularly with regard to the characteristics of the strategy adopted by the manager
Meeting with the manager
The partners of Tosetti Value regularly conduct one-to-one meetings with the managers of the funds in order to more clearly understand the origin of past performance as well as to obtain an overall vision of the market and the environment in which the manager operates and to verify the openness and transparency of the manager
Following the meeting, the manager's assessment can be positive, neutral or negative and the follow up: monitor, check reference, meet again, consider investment, etc.
The activity of each manager is subject to constant assessment over time and is based on an analysis of the performance and portfolio of the fund as well as by reading periodically published reports and by participating in conference calls