Every market movement represents an opportunity.

We combine the rigour of a quantitative vision with the thoroughness of a conviction-based approach. This dual approach allows us to understand that an opportunity in a given context can be perceived very differently when circumstances change. And to consider that all market phases - even the most difficult - present opportunities to be seized.

We have the experience and track record to know how our strategies behave, enabling us to identify the best opportunities. This knowledge allows us to aim for consistent performance over time, within a framework of rigorous risk management, whatever the market environment.

 

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Emmanuel Terraz
Global Head of Absolute Return & Quantitative Equity / Head of Equity Market Neutral
We are both quantitative and fundamental, looking at each position in detail to detect opportunity and reduce risk.

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Taking advantage of market inefficiencies

Our investment process is based on transactions constructed via short and long positions hedged against the main risks identified by the team. As such, each transaction is designed to be insensitive to market movements. Returns are generated thanks to the management team's know-how, which takes advantage of observed inefficiencies.

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Multiplying sources of performance

Our Absolute Performance strategies combine different performance drivers to obtain optimal portfolio stability: index or stock arbitrage, trend following, counter-trend management, diversification of operations, geographical zones, investment horizons and asset classes, etc.

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Deploying a universe of possibilities

We launched our first Absolute Return strategy in 2003. Since then, we have carefully developed a wide range of proven strategies that allow our clients to adapt their portfolios to a wide range of market environments, depending on their risk profile.

Figures are worth a thousand words. 

€11bn

AuM

+18

year track record

8

Complementary strategies

3

performance engines: equities, bonds, multi-assets

Seeking performance regardless of the market environment

The low correlation of Absolute Return strategies to most traditional asset classes, especially during market downturns, reduces portfolio fluctuations and overall risk. Integrating these strategies into a portfolio helps to diversify the portfolio and thus improve its risk/return profile.

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Be less dependent on market movements

We invest either through exposure to one asset class such as equities or bonds, or through several asset classes. We ensure that our portfolios are diversified across geographies, sectors and capitalisation sizes. The combination of fundamental and quantitative analysis, expertise and independence of our team allows us to optimise the management of the allocated risk budget and to achieve a high degree of decorrelation in our portfolios.

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Multiple resilient strategies

We have developed a wide range of Absolute Return strategies: long/short strategies, both through equity or bond investments (credit or high yield), M&A arbitrage strategies, market-neutral strategies, funds of hedge funds, diversified multi-asset strategies, systematic or trend-following strategies (CTA), etc. Each of these strategies aims to generate regular performance through the different market cycles and to limit the impact during periods of severe turbulence.

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Find out more

  • All our publications
  • Meet our experts
  • Candriam in the press

Main risks on Absolute Return Strategies

  • Risk of loss of capital
  • Equity risk
  • Interest rate risk
  • Commodity risk
  • Credit risk
  • High Yield risk
  • Currency risk
  • Liquidity risk
  • Concentration risk
  • Derivative risk
  • Counterparty Risk
  • Model risk
  • Arbitrage risk
  • Volatility risk
  • Emerging market risk
  • Leverage risk

Latest analyses

  • Absolute Return, Monthly Coffee Break

    Relief rally heading into year-end

    Although the economy continues to decelerate, equities staged a strong rebound during the month of October.
  • Absolute Return, Asset Allocation, Johann Mauchand, Research Paper, Steeve Brument

    Smile! CTA convexity is not lost…

    If the smile measures how the portfolio value reacts to changes in the underlying markets, then maybe we should measure the smiles – and this is what our investment team has been doing.
  • Absolute Return, Monthly Coffee Break

    Race to the bottom

    September was another very challenging month for investors. The market is subject to considerable uncertainty, with no clear evidence of the next step.
  • Absolute Return, Monthly Coffee Break

    Nobody wants to fight the Fed

    After a two-month period of improving risk appetite, the market started to head downwards in mid-August, influenced by the outcome of the Jackson Hole meeting. Jerome Powell’s hawkish tone obviously had a strong impact on the markets, but it was not the only strong driver. The deterioration of energy supply in Europe as we are quickly approaching winter is a cause for concern for industrial output, but also consumers, who will be facing record energy bills.
  • Absolute Return, Monthly Coffee Break

    The year of the bear

    As the investment community was slowly preparing for a well-deserved summer break, a higher-than-expected US CPI read revived fears that a recession might be around the corner. Uncontrolled inflation is pushing central bankers to continue raising the cost of capital, as the Fed did at its June meeting.
  • Absolute Return, Monthly Coffee Break

    Drawing a line in the sand

    Markets remain nervous, as investors perceive the Fed as being behind the curve in taking control over inflation. Rising prices are biting into consumer sentiment and savings, leading to decreasing growth expectations.
  • Monthly Coffee Break, Absolute Return

    Brace for impact

    There are currently so many headwinds to the economy that it is difficult to isolate THE driver that is having the biggest impact on deteriorating economic fundamentals in only a small paragraph.
  • Absolute Return, Monthly Coffee Break

    Changing volatility regimes

    The global economic outlook is foggy, and the start of the year has kept on adding additional layers of complexity.

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