Investment Process

Charlemagne Capital seeks to profit from inefficiencies in emerging markets to generate returns for clients across its product range using a rigorous, bottom-up stockpicking process combined with disciplined risk management and portfolio construction.

This investment process draws heavily upon the experience and expertise of our investment team, and has a principle of stock ownership at its heart. Every company covered, whether in a portfolio or not, is ‘owned’ by a specific team member. These ‘stock owners’ are responsible for their own primary research, including fundamental due diligence, analysis and modelling.

Primary research forms the basis of this stockpicking approach and leads to a share price target being set for every company covered. Investment ideas come from the experience and contacts of the investment team. All stocks considered for investment undergo a liquidity screening. On the ground company visits are an important part of the research process and provide the main source of company information.

We construct our client portfolios from those eligible companies with the greatest potential upside, with due account being taken of the conviction with which each stock owner views their price targets. This process is subject to disciplined risk management to ensure that risk remains concentrated on stock selection and is not unintentionally focussed on some other factor such as country or sector exposure. All investment decisions are subject to peer review.

Our portfolios are under constant review and as price targets are reached or alternative investments become more attractive, we make appropriate changes. Dealing is undertaken by Charlemagne Capital’s dedicated dealing team using a range of approved brokers that have been screened for counterparty risk.