A unique European stock picking strategy

We think the Memnon European Equity strategy can meaningfully outperform the European market thanks to our valuation driven process. Key to this long term performance ambition is our concentration on our very best ideas only and our risk management process.

Zadig relies on a hands-on research approach. We build our own valuation models, meet with management of companies, and select the best risk/return opportunities among European Equities. Our process is bottom up and valuation driven; we never invest if we can not justify a meaningful upside for a reasonable amount of risk. ESG factors are fully integrated in our valuation process.

Key to surviving the concentration of the Memnon European Equity portfolio is risk management. Zadig relies on multiple layers of risk controls that allow the portfolio to maintain an all-weather profile with constant exposure to cyclical, defensive, growth and financial companies as well as a variety of industries and countries.

Where we are different:

• PERFORMANCE: the comfort bias

We think there is a comfort bias in the market, and investors overpay for perceived safety. We are often contrarian in our approach; the Memnon European Equity portoflio is made of companies that are undervalued due to investors' perception of risk and the companies offer attracting risk/return profile as a result. Our aim is to understand the path to recovery and how market participants will reevaluate the company as a results of business improvement.

• LIMITED FACTOR EXPOSURE: truly active

At all times, the Memnon European Equity portoflio keeps a balanced exposure to cyclical, defensive, growth companies and we carefuly monitor and limit factor exposures (value, growth, momentum, etc.) through advanced proprietary quantitative analysis. By limiting the portfolio's exposure to broad factors the performance can not be replicated by ETFs, even the smart ones!

• NON CONSENSUAL: we bring diversification

By avoiding consensual investments, the Memnon European Equity portfolio looks and behaves differently from competitors, offering welcome diversification to our investors. The correlation of the portfolio's performance with peers is low, making the fund a truly diversifying asset for European Equity allocators.

Diversification vs Concentration

Diversification is a key word at Zadig

• For our portfolio: more important than the number of holdings is the fact that we carefuly asses how each portfolio holding behaves differently from others, lowering the tracking error of the strategy as a result despite a very high active share.
• For our investors' portfolios: investing in top performing strategies is critical, however investing in strategies that behave differently is a great way to lower the risk of the portfolio and increase 'risk-adjusted' performance.

A careful diversification of holdings lowers the risk of concentrated portfolios.