gullStock selection is fully automated based on 25 virtual analysts who exploit the inefficiencies of this American small and mid cap market.”
This management house classifies companies with a market capitalization of less than ten billion dollars into this category. The fund managed by this manager is focused on small American stocks. “We therefore have a potential investment universe which includes 2,500 listed companies. This universe is diversified and the companies have significant growth rates. We benefit from a reduced information flow and low coverage by analysts This category of assets therefore lends itself particularly well to active management.ajoute Seavan Sternheim.
A process based on artificial intelligence
There are several ways to approach this market segment. The easiest way is to invest in an ETF or index fund that tracks a market index of small and mid caps. Another way is to move towards a fund actively managed by precise choices of values (stock picking). Traditionally, the managers of this type of fund analyze the financial data of companies and often meet representatives of these companies (management, stakeholders). “For our part, we have favored a completely different approach. We have, in fact, developed a process based on artificial intelligence. The selection of stocks is entirely automated based on 25 virtual analysts who exploit the inefficiencies of this securities market. American small and mid capsexplains this manager.
“With cleantech, we invest in very long-term trends”
Managers define the elements that they will integrate into the management algorithms. The system then allocates capital as a multi-strategy manager based on risk, return and sustainability criteria which are integrated into the system. This fund invests on this basis in 400 companies. There is great sectoral diversity, however certain sectors, such as energy, for example, are not represented in this asset class. This fund is overweight on industrial stocks, information technology, healthcare and financials.
With the decline in interest rates underway, the financial situation is once again favorable to this asset category, within the framework of portfolio diversification. “We believe that the current economic environment is exceptionally fertile for active management and for a shift in portfolios towards quality small caps that can demonstrate rapid growth.”concludes Seavan Sternheim.
