Strategy allocation is a priority at Azimuth, and gets a huge amount of thought. Target allocations are across several strategies, with long/short equity as the current emphasis. Sub-strategies here include long biased equity, equity market neutral and varying systematic approaches.
Themes within the strategies may include, but not be limited to, clean tech, renewable energy, water, bottom of the pyramid initiatives, housing and agriculture, as well as socially responsible and corporate governance issues.
The target allocation for each strategy is established with the objective that its expected return is sufficient compensation for the risk it contributes to the aggregate portfolio. Our process combines a quantitatively driven analysis of various strategies' attractiveness and risks with our team's assessment of each strategy.
These inputs are then aggregated as we aim to opportunistically construct the portfolio in order to achieve the desired risk/return combination in the context of broader financial and economic conditions.