Asset Management

The teams at La Compagnie Financière Edmond de Rothschild have developed high-level know-how in the management of equity funds, convertible bond funds and balanced funds.

Rigorous investment process

Our investment experts manage securities portfolios with a relentless quest for even greater performance. They pick stocks on the basis of strong convictions which are forged independent of the passing trends woven by reference indices.

In the same spirit of independence, fund managers specialising in fundamental analysis make personal visits to some 2000 companies each year to personally evaluate their strategy, their business and even the quality of their management.

Five fund management styles

• Value funds focus on discounted stocks or those offering dividends that beat the market average.
• Opportunity strategies are deployed in country or regional funds requiring a dynamic style of management that is also opportunistic. It aims to generate performance throughout the business cycle.
• Sector funds use stock-picking based on investment themes in a range of business sectors that offer strong visibility over their medium term development prospects (in the food industry, for example, and environment).
• Convertible bond funds are managed in close liaison with our equity experts. They aim for steady performance over the long term by focusing on portfolio diversification and quality issues rated Investment Grade.

Comprehensive and innovative range

Covering the world’s regions, the equity fund range is being relentlessly enhanced through a strong drive for innovation:

• Trail-blazing, it offers novel products investing in new regions of growth such as India, China and Brazil.
• The bank also offers new thematic products in promising sectors such as the environment, infrastructure, or gold and commodities.

All these activities are grouped within our subsidiary, Edmond de Rothschild Asset Management.

La Compagnie Financière Edmond de Rothschild has recognised know-how in Long Only multi-management and hedge funds. Its management team offers a comprehensive range of funds of funds, picked with rigour from all asset classes and investment styles.

Robust expertise in Long Only multi-management and hedge funds

The multi-management specialists at La Compagnie Financière Edmond de Rothschild pick the best underlying funds and assemble them into funds of funds. In doing so, they bring financial products built on cutting edge techniques by the most talented investment teams within the reach of their clients.

These experts and analysts comprise two teams, for two different types of funds:

• Long Only multi-management blends optimum fund-picking with asset allocation. The Long Only fund of funds range can span all asset classes and styles of equity, bond and alternative fund management. These funds seek to maximise performance within a chosen volatility range.
• Alternative multi-management uses the innovative strategies deployed by underlying hedge funds to optimise portfolio performance while reducing volatility.

  The LCF Rothschild Group was one of the first to develop multi-manager funds of hedge funds and developed its own know-how in this field over the course of almost four decades.

  The hedge fund teams at La Compagnie Financière Edmond de Rothschild in Paris work in close contact with the Group’s other hedge fund teams based in London and Geneva. Concerted fund picking means that analysts can challenge each other and produce even better cover and knowledge of the underlying universe of fund managers. This close teamwork gives rise to the construction of a broad network within the hedge fund industry. It also provides the manager-analysts with a unique competitive edge in their relentless quest for novel investment ideas.

Privileged access and rigorous selection to target the finest funds

In order to build high performance portfolios that are balanced and robust, the fund managers at La Compagnie Financière Edmond de Rothschild have developed a rigorous investment process for:

• Picking underlying funds by applying stringent criteria regarding performance, the experience of the underlying fund managers, reactivity, transparency and the quality of risk management.
• In-depth audits to measure financial and operating risk.
• Building a lasting partnership with the fund managers selected.

With its historic reputation throughout the market and its long term partnership approach, La Compagnie Financière Edmond de Rothschild enjoys privileged access to information and to investment opportunities in underlying funds of high quality.

 Alternative and Long Only multi-management is carried out by our subsidiaryEdmond de Rothschild Investment Managers.

Guaranteed and structured investment solutions, fixed income, credit and hedge funds, quantitative funds and asset allocation

Teams at La Compagnie Financière Edmond de Rothschild have built proven know-how in the fields of asset structuring, hedge funds, fixed income and credit funds, as well as quantitative asset allocation and funds.

These centres of expertise make it possible to design and offer simple and transparent investment solutions to meet each client’s constraints and objectives, and adapt them to new financial market configurations. Located within a single entity, the management teams can marshal powerful synergies and offer tailor-made products and services.

Guaranteed and structured investment solutions

The structured fund specialists at La Compagnie Financière Edmond de Rothschild design investment solutions tailored to meet the particular constraints and objectives of both institutional and private investors.

They offer their clients formula funds as well as those employing portfolio insurance methods (CPPI) which provide the investor with partial or total capital protection.

Fixed income and credit funds

Fixed income and credit fund managers seek to optimise Risk/Reward ratios whatever the market conditions or the defined investment universe. Acting on very robust convictions, they operate in all segments of the yield curve and encompass a broad spectrum of issuers.

Drawing on their dual competencies as fund manager/analyst, members of the bond team on fundamental analysis that spans a wide range of issuers (with issues running from government bonds to Investment Grade corporate paper and emerging market debt). From these they pick the securities likely to generate the best returns for a given level of risk.

Hedge funds

Hedge fund experts manage portfolios that target total performance. They use so-called alternative techniques which, in particular, allow short selling and leverage strategies, within clearly defined risk limits.

Quantitative funds and asset allocation

These innovative financial solutions combine uncoupling with controlled volatility through total performance funds. Quantitative fund and asset allocation teams use model-based processes in evaluating the prospective returns offered by a broad range of markets and strategies and then weight them within the portfolios.

 All these activities are managed by our subsidiary,Edmond de Rothschild Investment Managers.

La Compagnie Financière Edmond de Rothschild offers an extensive range of investment opportunities in the field of private equity. Institutional investors and private clients are offered access to assets that have historically provided better performance than that of the stock markets.

Venture capital

Acting on behalf of its clients, La Compagnie Financière Edmond de Rothschild takes minority stakes (generally running from 10% to 49% of the share capital) in unlisted European companies seeking to finance a growth project prior to being listed on the stock exchange or a majority buyout. La Compagnie Financière Edmond de Rothschild manages private equity funds specialising in particular in venture capital for life sciences (such as biotechnology companies and those specialising in medical diagnostics) as well as innovative middle market companies through innovation funds.

 The private equity teams are based at our subsidiary, Edmond de Rothschild Investments Partners.

Capital transfer/LBO

La Compagnie Financière Edmond de Rothschild also takes majority stakes on behalf of its clients in French middle market companies which it then assists with various growth strategies. The bank manages two LBO funds built on an investment strategy to grow operating and strategic value, in close partnership with the management team.

In particular, La Compagnie Financière Edmond de Rothschild has built a wide base of expertise in the deployment of growth strategies for service networks, mainstream retailing, media, healthcare and selected industrial niche markets.

 Capital transfer transactions are carried out by our subsidiary, Edmond de Rothschild Capital Partners.

Funds of private equity funds

Two funds of private equity funds are managed by La Compagnie Financière Edmond de Rothschild to focus on European middle market companies. In this highly specialised segment it is renowned for its highly rigorous approach to fund picking and tracking.

The funds of private equity funds team is based in London at our subsidiary, Edmond de Rothschild Private Equity Select Ltd.