Investment Philosophy

The team at Zadig believe that mid-term valuation is the most important factor to generate performance in European Equities.

Their investment philosophy is based on the observation that market participants overpay for (perceived) certainty, good management, quality companies, and track record. On the contrary, investors offer large discounts for situations where there is controversy: profit warnings, slowing growth, change of management, M&A etc. Their approach is to investigate those controversial situations where investors disagree and take a position when they think the risk/return ratio is favourable. In addition to the Alpha generated over the long term, the strategy adds value to investors by providing decorrelation to their portfolio. Indeed, Zadig’s process is typically very differentiating from peers, leading to a high decorrelation between the strategy’s returns and peers returns, which is valuable for investors.

The team believes that the style neutral quality of the portfolio protects from macro rotations and allows decorrelated alpha to be found through stock picking. Zadig's investment team employs a fundamental, opportunistic, bottom-up investment process to build concentrated style-neutral portfolios of complementary names.  Their “Darwinian” approach to portfolio construction implies strong competition for capital within the portfolio and the highest convictions to prevail.