English

    risks.

    The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Credit risk, Liquidity risk, Risks linked to the use of derivatives and financial techniques and Concentration risk.

    glossary.

    DOM Global Macro

    A liquid, diversified absolute-return strategy with embedded protection, seeking uncorrelated positive returns across market cycles.
     

    The DOM Global Macro absolute-return strategy takes long and short positions across the liquid multi-asset universe, aiming to deliver positive performance in all market environments. It does this by combining proprietary systematic strategies and discretionary trading to build a diversified portfolio. 

    Cash +7%

    annualised return target over a market cycle1

    75 years

     of combined team experience

    8 -10%

    annualised volatility target over a market cycle1

    overview
    overview·our strategy·investment philosophy and process ·why us?·investment team ·performance and data·insights

    overview.

    harnessing performance drivers in all market phases.

    Since market regimes inevitably change and correlations break down, DOM Global Macro aims to offer greater diversification than traditional portfolios, which are typically overly exposed to growth environments. The strategy seeks uncorrelated returns outside of conventional equity and bond markets by providing access to alternative return sources. Its embedded defence mechanism aims to deliver an effective hedge against drawdown risk during periods of market stress. The strategy aims to provide a path to reliable diversification through:

     

    1

    Robust portfolio construction that is diversified across market regimes, providing exposures to alternative return sources and asset-price trends 

    2

    To mitigate drawdowns, the strategy uses an embedded defence mechanism that aims to generate positive returns that compensate for other exposures

    3

    A tactical approach that dynamically adapts to market and macro environments and capitalises on idiosyncratic investment opportunities

    4

    A combined systematic and discretionary allocation

    5

    Providing daily liquidity to enable investors to counterbalance other, more illiquid investments in an investor’s portfolio

     

    loim/strategy-pages/Dom Global macro/icons/DOM_-_Best_of_both_worlds

    best of both worlds
    Distinct systematic & discretionary allocation
     

     

     

    loim/strategy-pages/Dom Global macro/icons/DOM_-_Portfolio_construction

    robust portfolio construction
     Diversified across market regimes
    Alternative yield, Trend, Protection

     

     

    loim/strategy-pages/Dom Global macro/icons/DOM_-_Tactical

    tactical approach
    Dynamically adapt to the current market environment. Capitalise on selective investment opportunities

     

     

    loim/strategy-pages/Dom Global macro/icons/DOM_-_Agnostic

    asset class agnostic
    Cross asset long/short strategies to access independent return drivers
     

     

     

    loim/strategy-pages/Dom Global macro/icons/DOM_-_Liquid

    highly liquid
    Flexibility to adjust allocation
    Minimise transactional costs
    Daily liquidity
     

     

    Source: LOIM. For illustrative purposes only.

    our strategy.

    what works when? A robust portfolio construction for changing circumstances.

    DOM Global Macro is based on the persistent historical occurrence of economic regimes – growth, recession, inflation shocks and market stress – and responds to each with its three performance drivers:

    Alternative returns

    an income stream from investments outside conventional equity and bond markets. Well-suited for periods of stability and growth.

    Trend

    capitalising on sustained price moves, either up or down. Benefits the portfolio during episodes of market instability.

    Protection

    comes to the fore during times of market stress and provides convexity, aiming to minimise the overall portfolio’s drawdowns.

    Source: LOIM. For illustrative purposes only. 

     

    The strategy invests in highly liquid, over-the-counter and listed derivatives such as futures, options, swaps and forward contracts in global fixed income, equity, currency and commodity markets. 

     

     

    asset allocation.
     

    Each of these three drivers form the strategic asset allocation of the strategy and are built to generate performance in different market environments, ranging from periods of stability to over-optimism and stress (see chart below).

    The strategy contrasts with conventional diversified portfolios, whose returns are predominantly driven by growth environments.

    DOM Global Macro demonstrates a positive correlation to a 60/40 balanced portfolio in good times but displays a negative correlation when it suffers, thus offering an asymmetric return profile.

    return sources triggered by the market environment.2

    investment philosophy and process.

    asset allocation 
    We allocate assets in three stages:

    1

    Strategic asset allocation

    We implement alternative returns and trend exposures systematically, to remove human biases. Adding protection through discretionary methods avoids the limitations of systematic protection, which often relies on past correlations and path dependency3. Thus, protection is present at all times in the portfolio and is tailored to hedge the systematic exposures. 
     

    2

    Dynamic allocation

    To fine-tune the portfolio, we manually rebalance our different strategies based on the current macro and market environment while always adhering to our strict set of proprietary rules. 
     

    3

    Opportunistic allocation

    Discretionary investments that seek to capitalise on attractive opportunities resulting from potential market dislocations. 

     

    Throughout the process, we continuously monitor and manage risk to ensure the portfolio is behaving according to our objectives through our embedded defence mechanism. 

     

     

    Source: LOIM. For illustrative purposes only.

     

    why us?
     

    • Targeting positive absolute returns across market cycles
       
    • Combining proprietary systematic strategies with discretionary trading
       
    • Low correlation to traditional and non-traditional asset classes
       
    • Exposure to alternative return sources beyond traditional equity and bond markets
       
    • Embedded protection aiming to hedge periods of market stress 
       

    investment team.

    The DOM Global Macro team4 has more than 75 years of cumulative experience from diverse investment backgrounds, bringing complementary skills across asset classes and systematic or discretionary trading. The team collectively managed USD 1.8 billion in two former Credit Suisse UCITs strategies for the past four years, honing its approach to investing throughout market regimes and unexpected shocks.

     

    LOcom-AuthorsAM-Petrescou.png
    Valentin Petrescou
    Lead Portfolio Manager
    LOcom_AuthorsAM-Anthamattan.png
    Didier Anthamatten
    Lead Portfolio Manager

     

     

    LOcom_AuthorsAM-Mueller.png
    Philipp Mueller
     Portfolio Manager
    LOcom_AuthorsAM-Witschel.png
    Max Witschel
    Portfolio Manager

     

    LOcom_AuthorsAM-Gatto.png
    Jeremy Gatto
    Portfolio Manager

     

    Find out more about our DOM Global Macro fund, including share classes.

    more information

    sources.

    1 LOIM. Cash index: SOFR in USD, SARON in CHF, ESTR in EUR and Sonia in GBP. Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance. For illustrative purposes only. 
    2  LOIM. For illustrative purposes only. Target asset allocation and portfolio composition represent a portfolio construction goal. It is not representative of actual, complete nor accurate past, present or future portfolio holdings. The grey shading represents return sources that are not triggered by the market environment. 
    3 Path dependency relates to the behaviour of one asset relative to another, in magnitude and time. It is similar to correlation but also captures how prices move in respect to each other.
    4 Data as at 7 October 2024. Team subject to change without notice.

    insights.

    LOIM launches DOM Global Macro strategy with USD 100 million
    media releasesDom global macro
    media releasesDom global macro

    LOIM launches DOM Global Macro strategy with USD 100 million

    more insights

    get in touch.

    Please enter your first name.

    Please enter your last name.

    Please enter your company name.

    Please enter your job title.

    Please enter a valid professional email address.

    Please enter your message.

    Your information will be used accordingly to our Privacy Statement

    Lombard Odier Fleuron

    important information.

    This document is a Corporate Communication and is intended for Professional Investors only. This document is a Corporate Communication for Professional Investors only and is not a marketing communication related to a fund, an investment product or investment services in your country. This document is not intended to provide investment, tax, accounting, professional or legal advice. This document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter the “Company”).

    More informations