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

Global Delta combines systematic tools with market-driven insights to navigate a broad universe of stocks with agility and depth. Our platform focuses on emerging markets with a localized approach to capture timely and nuanced dynamics.

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)

* Global Delta Capital maintains memberships with ESG-aligned organizations to monitor and align the firm and its investments with evolving standards and frameworks appropriate for their industry and jurisdiction. While Global Delta’s funds and strategies are ESG-aligned, the Firm makes no claim that the funds or strategies are entirely focused on ESG-based investment objectives. Reference to a company above does not imply that such company endorses Global Delta. References to these companies are for illustrative purposes only.

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.