We are investors, just like you.
We share the same fundamental aim of protecting and growing the real value of our wealth and we have the same means to achieve it. Hence, we face the same basic challenges, day in, day out. We feel like you, we think like you.
Secondly, we are not an ‘asset gatherer’, meaning that our only route to success, indeed survival, is providing actual solutions to your investment problems. If we don’t add value to you, we don’t perform for ourselves.
Finally, and crucially, our money is at stake, side-by-side with yours. Sector AM is predominantly owned by us, the professionals working in it. It’s our business. Our investment partners invest a relevant part of their own money in their funds but, even more importantly, the true alignment of interests is ensured by our business model: our autonomous investment teams are majority equity owners in their own investment boutique, which means their main financial incentive is not their fixed or incentive fees, but the intrinsic value of their investment company. Therefore, we can potentially lose far more than an investor in our funds. In essence: if you lose, we can lose more.
The foundation for our approach are the core beliefs that: we can’t control the investment outcome but we can, and should, control the investment process; complexity must be met with simplicity; investment managers must be independent, focused and have true “skin in the game”.
We can’t control outcomes, but we can control processes
Investing, to us, is not trying to predict what is going to happen, an approach we believe is doomed to failure. Rather, we strive to understand the range of what might happen and build portfolios aimed at delivering convex payoffs for such range of possible outcomes.
Highly complex systems result in outcomes whose apparent precision comes at the expense of robustness: often a recipe for dramatic losses when markets turn. We are convinced simplicity and frugality are the best way to deal with the complexity of reality. And, simplicity, frugality and transparency allow our investors to understand the risks of their investments.
We are a multi-boutique firm with fully autonomous investment partnerships. This allows the investment managers to focus solely on what they do best – investing money - without being constrained by any ‘house view’ and without being distracted by ‘ancillary’ services such as marketing, operational, legal, and compliance. At the same time, our fellow investors can rely on at least two layers of independent expertise in Risk Management, firstly at investment partnership level and then at Sector Group level. Notably, we scout, select and retain only investment partners and strategies we believe will generate superior performance: commercial fads play no role in our choices.
Crucially, our model is based on a significant equity ownership of the investment managers in their own boutique, which ‘forces’ them to align their interest with those of our fellow investors.
The past 36 years have been unusually benign to financial markets, making indexing a strong performer. Now, however, expected returns are at historical lows, determined by high valuations and low expected economic growth. Not an environment for indexing, then. The time for truly active management is now.
Our Investment Partners
A global macro investor, expressing its views on prevailing trends or potential dislocations by using all major asset classes.Read more
Constructing market neutral long/short portfolios from global medium-size and large-size consumer goods firms.Read more
Solely dedicated to the global healthcare sector, the team constructs market neutral long/short and long-only portfolios.Read more
Value oriented investment partnership managing a portfolio of long term equity investments in European mid-cap companies.Read more
Structuring broader investment portfolios by combining proprietary strategies with the investment skills of the full range of Sector’s investment teams.Read more
From a Nordic vantage point, the team applies a thematic approach to invest in firms of medium and large size, across the region and beyond.Read more
A classic Ben Graham-style long/short value investor, focusing on neglected areas within the Japanese equity market.Read more