Interest rates, as the cost of capital for sovereign and corporate entities, are inherently cyclical and therefore driven by macro-economic factors.
Assessment of value and investment views are thus anchored within a macro-economic context. Long-term macro-economic objectives centre on employment and wealth creation, influenced by monetary and fiscal policies in a bid to balance growth and inflation.
Our investment process uses our macro and quantitative skills. A macro-economic description of the current and expected investment environment is formulated (and published to investors) via the Terebinth Macro Matrix. Within this macro context, we produce expected asset class returns projections from our quantitative modelling framework. This allows us to produce an optimal asset allocation suitable for the current macro investment outlook.
We maintain a strong focus on staying with macro themes and implementing strategies in liquid assets that lowers volatility and trading costs.
A macro philosophy leads to low correlation with the broader market and lower volatility. In-house relative value models are used to screen for opportunities to best implement allocation strategies within each asset class.