Portfolio Managers Emphasize Active Positioning Over Index-Tracking Strategies
A Swiss wealth manager structures client portfolios around research-driven convictions rather than passive benchmark replication.
Mirabaud’s investment approach emphasizes selective positioning based on security analysis and market outlook. Portfolio managers take active positions reflecting research conclusions even when these deviate from index weights or peer positioning.
Ricardo Castillo, head of investments, highlighted conviction and active management as core principles guiding portfolio construction. The approach requires willingness to underweight popular securities or overweight overlooked opportunities.
“I am honoured to join Mirabaud and the talented team in the Investment Division to develop customised asset management solutions based on the firm’s principles of independence, conviction and active management,” Castillo said.
Research Infrastructure Supports Investment Decisions
The investment division operates with dedicated research capabilities analyzing securities, sectors, and market conditions. Khaled Louhichi heads the financial research unit providing analysis supporting portfolio recommendations.
Economic and strategic analysis teams contribute macro perspectives on interest rates, currency movements, and geopolitical developments. This research infrastructure aims to identify opportunities requiring conviction to exploit.
Active management demands resources analyzing companies, industries, and markets beyond what passive strategies require. The banking group invests in research capabilities supporting conviction-based decisions.
Portfolio managers combine quantitative analysis with qualitative judgments about management quality, competitive positioning, and industry dynamics. Research conclusions inform security selection and portfolio weighting decisions.
Performance Accountability Accompanies Active Positioning
Conviction-based investing creates performance dispersion compared to benchmarks. Portfolios deviating from index weights will underperform during periods when the manager’s views prove incorrect.
This performance risk requires client understanding and patience during inevitable periods of relative underperformance. Active management works only when clients maintain conviction through market cycles.
The institution must deliver sufficient outperformance over time to justify fees and tracking error. Active strategies charging premium fees while delivering index-like returns fail to provide value.
Investment Committee coordination ensures some consistency across client portfolios while allowing customization. Core positioning reflects institutional research views, with adjustments for individual client circumstances.
Client Portfolios Reflect Individual Objectives
Active management requires understanding client risk tolerance, time horizons, and return requirements. Portfolio construction balances conviction-based positioning with client-specific constraints.
Some clients emphasize capital preservation over maximum returns, limiting the degree of active positioning appropriate for their portfolios. Others accept higher volatility pursuing outperformance objectives.
The wealth management approach combines institutional investment views with individual customization. Relationship managers ensure portfolio strategies align with broader client circumstances beyond pure return optimization.
ESG considerations, liquidity needs, and tax circumstances affect portfolio construction alongside return objectives. Conviction-based investing must accommodate these multiple dimensions when building client solutions.
Market Conditions Test Conviction Commitment
Active management faces challenges during strong momentum markets when index concentration increases. Technology sector dominance in recent years created headwinds for diversified active managers.
Conviction requires maintaining positions through periods when markets ignore fundamental research. Portfolio managers must distinguish between incorrect analysis and correct analysis awaiting market recognition.
The institution’s family ownership theoretically enables patience with active strategies during temporary underperformance. Managing partners can maintain conviction-based approaches without quarterly pressure affecting publicly traded competitors.
However, sustained underperformance eventually requires strategy reevaluation regardless of ownership structure. Client retention depends on delivering results justifying active management fees and tracking error.
Castillo’s appointment signals continued commitment to active management despite industry trends favoring passive strategies. The institution maintains conviction-based investing as differentiation while many competitors reduce active positioning.
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Portfolio Managers Emphasize Active Positioning Over Index-Tracking Strategies
A Swiss wealth manager structures client portfolios around research-driven convictions rather than passive benchmark replication.
Mirabaud’s investment approach emphasizes selective positioning based on security analysis and market outlook. Portfolio managers take active positions reflecting research conclusions even when these deviate from index weights or peer positioning.
Ricardo Castillo, head of investments, highlighted conviction and active management as core principles guiding portfolio construction. The approach requires willingness to underweight popular securities or overweight overlooked opportunities.
“I am honoured to join Mirabaud and the talented team in the Investment Division to develop customised asset management solutions based on the firm’s principles of independence, conviction and active management,” Castillo said.
Research Infrastructure Supports Investment Decisions
The investment division operates with dedicated research capabilities analyzing securities, sectors, and market conditions. Khaled Louhichi heads the financial research unit providing analysis supporting portfolio recommendations.
Economic and strategic analysis teams contribute macro perspectives on interest rates, currency movements, and geopolitical developments. This research infrastructure aims to identify opportunities requiring conviction to exploit.
Active management demands resources analyzing companies, industries, and markets beyond what passive strategies require. The banking group invests in research capabilities supporting conviction-based decisions.
Portfolio managers combine quantitative analysis with qualitative judgments about management quality, competitive positioning, and industry dynamics. Research conclusions inform security selection and portfolio weighting decisions.
Performance Accountability Accompanies Active Positioning
Conviction-based investing creates performance dispersion compared to benchmarks. Portfolios deviating from index weights will underperform during periods when the manager’s views prove incorrect.
This performance risk requires client understanding and patience during inevitable periods of relative underperformance. Active management works only when clients maintain conviction through market cycles.
The institution must deliver sufficient outperformance over time to justify fees and tracking error. Active strategies charging premium fees while delivering index-like returns fail to provide value.
Investment Committee coordination ensures some consistency across client portfolios while allowing customization. Core positioning reflects institutional research views, with adjustments for individual client circumstances.
Client Portfolios Reflect Individual Objectives
Active management requires understanding client risk tolerance, time horizons, and return requirements. Portfolio construction balances conviction-based positioning with client-specific constraints.
Some clients emphasize capital preservation over maximum returns, limiting the degree of active positioning appropriate for their portfolios. Others accept higher volatility pursuing outperformance objectives.
The wealth management approach combines institutional investment views with individual customization. Relationship managers ensure portfolio strategies align with broader client circumstances beyond pure return optimization.
ESG considerations, liquidity needs, and tax circumstances affect portfolio construction alongside return objectives. Conviction-based investing must accommodate these multiple dimensions when building client solutions.
Market Conditions Test Conviction Commitment
Active management faces challenges during strong momentum markets when index concentration increases. Technology sector dominance in recent years created headwinds for diversified active managers.
Conviction requires maintaining positions through periods when markets ignore fundamental research. Portfolio managers must distinguish between incorrect analysis and correct analysis awaiting market recognition.
The institution’s family ownership theoretically enables patience with active strategies during temporary underperformance. Managing partners can maintain conviction-based approaches without quarterly pressure affecting publicly traded competitors.
However, sustained underperformance eventually requires strategy reevaluation regardless of ownership structure. Client retention depends on delivering results justifying active management fees and tracking error.
Castillo’s appointment signals continued commitment to active management despite industry trends favoring passive strategies. The institution maintains conviction-based investing as differentiation while many competitors reduce active positioning.