SPX makes investment decisions through a methodical process of research-driven trading.
Construction of scenarios
- Construction of macroeconomic scenarios and microeconomic analysis 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
Identification of opportunities
- 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
Supervision & monitoring
- 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.
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.
Investment 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.
Macro 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 Brazilian and global economy.
Comprised of the equity research and management teams. The research team presents their assessments based on-site visits and frequent contact 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.
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.
Risk 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.