We believe improving companies offer the most attractive opportunities – both in terms of impact on society and returns for investors.
Co-Head of SRI strategies, Zadig Asset Management
An investment philosophy maintained for 20+ years
#1Highly concentrated portfolio of 25-35 European stocks
#2Valuation is crucial in the ‘sustainability at a reasonable price’ investment process
#3Proprietary research focused on transparency to avoid green washing
#4Tried and tested risk management to limit factor exposure in the portfolio
Opportunity for investors
Zadig is a signatory of the UN Principles for Responsible Investment and was awarded the French SRI Label for this fund
ESG is an integral part of stock picking
Their approach to sustainability is to not just look at ESG data or ratings. Rather, they use a proprietary approach and seek a deep understanding of each company and their products or services to see how they are contributing to making the world a better place.With more than 20 years’ experience, the managers do not base their investment decisions on the future of interest rates or trends in corporate credit spreads but rather focus on credit quality, cash flow and price.
Avoiding the perils of the green bubble
Unfortunately, not all stocks dubbed ‘sustainable’ are as transparent as we would like. Therefore, Zadig AM takes transparency very seriously in order to avoid investing in companies that have been green washed and focuses on hard data rather than promises.
Valuations are crucial. With a history as a performance-driven hedge fund manager, Zadig AM looks for ‘sustainability at a reasonable price’.
A contrarian approach
Rather than investing in ‘Best in Class’ sustainable businesses, Zadig AM takes a more contrarian approach, looking for recognized sustainable companies that trade at a discount due to temporary uncertainties to their business, or companies that have not been recognized as sustainable yet and are expected to rerate in the future.
Source: Zadig Asset Management, data as of end of December 2020
Founded in 2005 by Laurent Saglio, who had launched and successfully co-managed the Voltaire fund from 1998, Zadig Asset Management firm is a European equities specialist.
iM Global Partner is a minority shareholder with a 20% stake acquired in January 2020.
THE INVESTMENT PHILOSOPHY
The strategies are based on the same unique, robust and pragmatic investment philosophy and rely on 30 years of experience in successfully investing in European equities and building concentrated portfolios of Zadig’s best research ideas.