Investment Strategies

Overview

Our investment philosophy is based on three core principles, built on decades of research and experience. By applying these principles, we seek to deliver sustainable, long-term value for our investors.

Thoughtfully Designed

In portfolio construction, risk management and trading, we seek additional value for our clients. Using both qualitative and quantitative tools, we’re meticulous in every detail of the investment process.

Risk Management

Our Risk Management team oversees all aspects of both financial and non-financial risks including Market and Liquidity Risk, Counterparty Risk, Model Risk, Operational Risk, and Technology Risk. The firm employs a robust Enterprise Risk framework, which provides for a strong governance structure and ensures independence in risk making decisions. We believe it’s important for Risk Management to interact closely with the Portfolio Management, Research, and Trading teams, working together in managing risk. Together, we aim to ensure that portfolios are manageable through sudden and severely adverse stress events.

Equities

For nearly two decades, our overall goal has been to build compelling and repeatable investments that are highly diversified across signals and regions, and within a risk-controlled framework. We apply this systematic approach across our strategies, catering to the widespread investment needs of our clients.

Single-Style

Strategies that provide pure implementations of individual styles, such as defensive, momentum and value.

Multi-Style

These strategies harness the diversification and potential return benefits of investing in multiple well-known styles in an integrated fashion.

Enhanced

These strategies seek to provide consistent excess returns over common benchmarks. They combine established signals backed by academic evidence with proprietary signals based on rigorous research.

Relaxed Constraint

Strategies that build on Enhanced, but broaden the implementation universe through use of limited shorting in a 130/30 context while remaining beta-1 products.

3-Alpha

These strategies differentiate by recognizing the inherent risks and opportunities that come with global equity investing. They pair our Enhanced Strategy alongside dedicated country and currency models for integrated alpha opportunities.

Fixed Income

We aim to generate consistent outperformance by systematically applying investment themes across securities. We believe that a multi-factor investment approach, harnessing underlying drivers of performance, will generate excess returns that are uncorrelated to other asset classes as well as traditional fixed income managers.

Absolute Return Credit

A market neutral credit strategy that seeks to deliver positive absolute returns with low correlations to traditional equity and credit markets. It does this by investing both long and short in a diversified portfolio of corporate credit and equity.

Emerging Markets Hard Currency

Seeks excess returns through country, maturity, and currency selection across hard currency and local currency markets. While the strategy includes local currency investments, it takes no beta to local currency debt, engages in no overall duration or spread timing, and targets a beta of one to its hard currency benchmark.

Global Aggregate

Seeks excess returns through country, maturity, credit, and currency selection. The strategy targets the credit and duration profile of the benchmark and so does not seek to engage in duration timing or sector selection.

Global Governments

This strategy seeks excess returns through country, maturity, and currency selection. It engages in minimal duration timing.

High Yield Corporates

Investment themes in this strategy are primarily expressed by within-industry security selection. It does not seek to engage in duration or credit timing.

Investment Grade Corporates

Seeks to outperform a core or long duration corporate benchmark. Our investment themes are primarily expressed by within-industry security selection. The strategy does not seek to engage in duration or credit timing.

U.S. Core Plus

Strategy that seeks excess returns through country, maturity, credit, and currency selection. Out-of-benchmark sectors are strictly used to increase security selection breadth, while still targeting the credit and duration profile of the benchmark, and so does not seek to engage in duration timing or sector selection.

Alternatives

As a pioneer in alternative investing, Open Wealth Financial has a long track record of managing the complexities of these types of strategies. By investing long and short, and balancing exposure to factors and asset classes, our alternative strategies are built to seek returns in both up and down markets. We offer both absolute return strategies, which target zero exposure to traditional markets, either at all times, or on average; and total return strategies, which maintain some exposure to traditional markets.

Absolute Return

Absolute Return Strategy

Provides exposure to highly diversified portfolios, aggregating nearly all of Open Wealth Financial’s strategies in a multi-strategy format.

Arbitrage Strategies

We offer convertible, merger and event-driven arbitrage strategies, or a diversified portfolio combining these strategies.

Global Aggregate

Seeks excess returns through country, maturity, credit, and currency selection. The strategy targets the credit and duration profile of the benchmark and so does not seek to engage in duration timing or sector selection.

Credit Strategies

Seeks positive absolute returns by investing both long and short in a diversified portfolio of credit instruments.

Equity Market Neutral

Employs a multi-factor, market-neutral investment process based on Open Wealth Financial’s broadest global stock selection capabilities.

Global Macro

Invests in major asset classes based on prices and macroeconomic fundamentals, using a variety of quantitative and qualitative inputs.

Hedge Fund Premia

Seeks to efficiently capture a diversified set of classic hedge fund styles and deliver them to investors in a transparent and liquid vehicle.

Managed Futures

A diversified strategy that seeks to take advantage of price trends in global asset classes.

Opportunistic

Identifies securities that show extreme undervaluation based on both our quantitative models, as well as a thorough qualitative review.

Real Return

Seeks to provide an inflation-hedging, positive real return through a diverse mix of strategies and assets.

Style Premia

Seeks to harvest the return premia from well-known factors such as value, momentum, carry and defensive across asset classes and geographies.

Volatility Strategies

Invests on the volatility risk premium and can be applied as either a standalone strategy, a buy-write, or to enhance traditional equities.

Investment Vehicles

Open Wealth Financial strategies are available in a variety of investment vehicles, from offshore limited partnerships to mutual funds and model portfolios. We also offer tax-aware implementation of some of our strategies, which may help taxable investors better reach their after-tax investment goals.

Institutional Investment Vehicles

We serve institutional investors—including pension funds, defined contribution plans, insurance companies, endowments, and foundations—with a range of vehicles to suit to their organization’s governance, pricing and liability needs.

  • Private Funds
  • Separate Managed Accounts
  • Collective Investment Trusts

Registered Funds

We make many of our strategies accessible to individual investors through Open Wealth Financial-sponsored mutual funds, and offer options for investors in Europe and in Australia.

  • U.S. Mutual Funds
  • UCITS
  • Australian Funds

Credit Strategies

Seeks positive absolute returns by investing both long and short in a diversified portfolio of credit instruments.

Equity Market Neutral

Employs a multi-factor, market-neutral investment process based on Open Wealth Financial’s broadest global stock selection capabilities.

Global Macro

Invests in major asset classes based on prices and macroeconomic fundamentals, using a variety of quantitative and qualitative inputs.

Hedge Fund Premia

Seeks to efficiently capture a diversified set of classic hedge fund styles and deliver them to investors in a transparent and liquid vehicle.

Managed Futures

A diversified strategy that seeks to take advantage of price trends in global asset classes.

Opportunistic

Identifies securities that show extreme undervaluation based on both our quantitative models, as well as a thorough qualitative review.

Real Return

Seeks to provide an inflation-hedging, positive real return through a diverse mix of strategies and assets.

Style Premia

Seeks to harvest the return premia from well-known factors such as value, momentum, carry and defensive across asset classes and geographies.

Volatility Strategies

Invests on the volatility risk premium and can be applied as either a standalone strategy, a buy-write, or to enhance traditional equities.

We offer Global commodity brokerage services, managed futures consultation, direct access trading, and trading system execution services to individuals, corporations and industry professionals.

Contact Us
  • 1 MAIDEN LANE, NEW YORK, 10038

  • +1 984 733-3354

  • info@openwealthfinancials.com

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