Investment Approach

1
Construction of scenarios committees

Construction of macroeconomic scenarios and microeconomic analyses based on interaction among fund managers, economists, and analysts
Democratic discussion forums where independent thinking and a diversity of ideas are encouraged to avoid group thinking
Constant dialogue with outside consultants

2
Identification of opportunities and decision making fund managers

Fund managers compare the internally constructed scenarios with those priced in by the markets to identify imbalances and asymmetries that represent investment opportunities
Synergy between areas facilitates identification of opportunities
Specialists in each market segment choose the best strategy to capture the opportunity identified
The size of an allocation reflects the degree of conviction in the strategy
Execution of products validated by Compliance

3
Supervision & monitoring executive & risk committee

Executive Committee approves and supervises the strategies defined in a continuous monitoring process
Risk limits defined for fund on a global basis with no specific limits per market sector
We do not work with predetermined stop-loss limits
Changes in scenarios and prices may change the size of our allocations

A model of partnership and meritocratic management

1Executive committee

Executive Committee is comprised of the four controlling partners. It is responsible for developing SPX’s strategy, assessing the team’s performance, and defining profit distribution.

2Investment management committee

Comprised of all senior partners. The committee’s purpose is to discuss the funds’ investment strategies through individual presentations, demonstrating the fundamentals of allocations and the percentage of risk allocated.

3Macro analysis committee

Comprised of the research and management teams, who discuss specific topics such as the political and economic outlooks, inflation, balance of payments, fiscal policy and economic activity. Its goal is to analyze and understand the key tendencies in the global economy.

4Equities committee

Comprised of the equity research and management teams. The research team presents their assessments based on frequent contact and on-site visits with companies, as well as information from a wide array of sources including their competitors, suppliers, and other analysts. Portfolio managers present their portfolios to the committee every week, and the research team puts forward new ideas and updated information on the sectors and companies therein. Daily meetings are also held for portfolio managers to interact dynamically with researchers and discuss relevant information and facts that may change their views of the overall market and/or specific stocks and sectors.

5Commodities committee

Comprised of the commodities research and management teams. They present and discuss their latest projections for the balance of supply and demand in each commodity. Researchers and portfolio managers seek to identify imbalances in supply and demand that could lead to significant price changes. Opportunities for allocations are discussed and explored.

6Risk and Compliance committees

These are two distinct committees. Each is comprised of Executive Committee members and the respective teams. The committees are responsible for defining the policies, controls, and guidelines to be implemented by each team. Both risk management and compliance teams are independent and report directly to the Executive Committee