INVESTMENT STRATEGY
Our investment philosophy is distinctive because we do not rely on forecasting to optimise our strategy. Our service offering is exceptional because we invest alongside our clients and treat them like family.
BUILT ON MARKETS, NOT PREDICTIONS
Our strategy is to invest in global financial markets to achieve broad and efficient exposure to equities for growth, bonds for income, and liquid alternatives (hedge funds) for diversification.
We do not take macroeconomic views, make tactical asset allocations, or select individual stocks, because it leads to underperformance according to decades of empirical evidence.
The aim is to capture long-term market trends using a passive investment approach, with active portfolio rebalancing when market volatility creates opportunities.
92%
Pan-European equity funds that underperformed over 10 years (S&P Spiva Scorecard 2023)
17%
Success rate for active equity managers over a decade (Morningstar 2023)
99%
US equity funds that failed to beat S&P 500 over 10 years (Financial Times 2016)
TRUE DIVERSIFICATION
When equities decline, investing in so-called market-neutral investment strategies represents one of the few effective means for generating returns. Hedge funds seek to capitalise on the relative performance between individual securities rather than relying on the direction of the broader market. They can also be a source of capital when rebalancing our portfolios during times of market adversity.
Corporate and government bonds can give us yield and diversify our portfolios. It is important to match the time to maturity with the prevailing interest rate environment. Any foreign currency risk needs to be actively managed to avoid return erosion. Precious metals and digital assets (for qualified investors) can offer further differentiation when optimising our client investment strategies.
“What our clients tell us they like about Blu is that they have their own proprietary trading desk at their disposal. We know what’s going on in the markets, we can guide them on any investment views they would like to express, and we can make changes to their portfolios immediately. It puts our clients firmly in charge of their money and the risks they want to take, knowing they have immediate access to advice they can trust."
Vishesh Dawar
Investment Manager, joined Blu in 2018