What we do
Philosophy
The future is digital, global, and sustainable. We believe:
- There is a spectrum of markets that remain inefficient. This inefficiency is more pronounced in countries with less institutional investor presence and lower market cap firms, where growth-oriented themes often dominate.
- A systematic approach is ideally suited to target global mispricings. A market orientation is required to identify market inefficiencies.
- As technology, regionalization, and the shift towards sustainability disrupt the world economy, there are significant opportunities for investment in stocks that will likely benefit from these trends.
- An early tilt toward these themes will be rewarded as global investors shift attention to them through fund flows and rising valuations.
Edge
We target a high alpha and high impact portfolio in less trafficked markets by incorporating market-driven insights into our systematic process.
Our investment edge comes from a combination of these characteristics:
- A systematic investment approach complemented by fundamental analysis and market-driven insights.
- Niche focus on inefficient markets that are less scrutinized by global institutional investors.
- An enduring research effort to capitalize on sustainability, localization, and market trends and a commitment to delivering impact through engagement and investing in firms with a track record of improving stakeholder value.
Approach
Idea Generation
- Our ideas fall into categories of investor behavior: misvaluation, underreaction, and sentiment swings.
- We use knowledge of local market institutions, data, and investor groups within each market.
- We also draw from macro research, behavioral finance, and structural market inefficiencies.
Signal Development
- Our tight-knit investment team continuously evaluates and clears ideas quickly.
- We use efficient and scalable proprietary research infrastructure and deploy actionable signals quickly to production.
Optimization
- We take account of risk constraints, liquidity, transactions costs, and macro conditions in portfolio construction.
- We use a robust optimization framework to guide rebalancing.
Sustainability
We believe sustainability in emerging and frontier markets suggests both outsized vulnerability and outsized opportunity.
A sustainable lens enables us to generate a more holistic view of companies to inform better investment decisions.
Our objective is to use the power of our capital to build strong, sustainable local economies.
Key considerations include:
Data | “AI” for Alpha and Impact: Systematic tools, including machine learning and natural language processing, enable a rigorous review of unstructured data sources.
Integration | Market-relevant considerations are heterogeneous across regions, sectors, and signals. We offer a systematic, data-driven approach to quantifying forward-looking themes that matter to long-term performance.
Solutions | Global Delta aims to provide sustainable solutions to clients. Our forecast and optimization technology enable selective exclusionary screens.
Engagement | Stewardship & Partnerships: We partner with leading institutes to participate in thought leadership and stewardship. These partnerships inform our idea generation. Key partners in our engagement efforts include the following:
- Principles for Responsible Investment (PRI)
- Advance Initiative for Human Rights (by PRI)
- World Benchmarking Alliance – Collective Impact Coalition for Ethical AI & Transition Plans
- Net Zero Asset Managers’ Initiative (NZAM)
- Climate Action 100+
- Asia Investor Group on Climate Change (AIGCC)
- High Meadows Institute
- CFA Institute – Claimed compliance with the CFA Institute’s Global ESG Disclosure Standards for Investment Products
- The Investment Diversity Advisory Council (IDAC)
Disclaimer: Logos have been included for illustrative purposes only. The inclusion of third-party firm and/or organization brands and logos does not imply any affiliation with these firms or organizations.
Sustainable Investing Policy
At Global Delta Capital (“Global Delta”), we believe in the power of capital to generate returns for our investors and positive impact through our investments.
As intentional investors, our capital has the power to develop financial systems and standards to promote growth, stability, and positive impact throughout the globe. This philosophy takes several forms, including integration, stewardship, and custom solutions.
Investment Approach
Our investment approach is guided by a systematic evaluation of thousands of companies, enabling us to identify and direct capital to companies driving sustainable development. Consistent with our fiduciary duty, we seek to preferentially invest in companies that demonstrate strong governance and integrity, and whose business practices are aligned with sustainable and climate-resilient growth.
Our flagship strategy, Emerging Markets All Cap Strategy, disallows investments in tobacco, controversial weapons, UNGC violators, and red-flagged stocks according to MSCI.
Through our stewardship and proxy voting, we not only improve our idea generation for greater alpha potential, but we also contribute to stabilizing economic systems and emphasizing transparency by promoting institutional disclosure standards and alignment of private sector shareholder interests with inclusive growth.
Global Delta Capital applies the Operating Principles for Impact Management (OPIM) to guide its impact consideration across its investment and stewardship activities.
Custom Solutions
We are data-driven and use advanced technology to create tailored investment portfolios that meet the distinct needs of our investors, including restrictions against companies that may be engaged in human rights abuses.
Reporting
We report on our commitment to sustainable investing through annual reports to the PRI, annual stewardship reports, regular updates on our progress toward our commitments, and periodic positioning reports.
Governance Structure
Our Management Committee and our Advisory Council oversee the governance of our investment process and business practices, ensuring that our sustainability commitments are integrated into all aspects of our work.