How we invest
We build customized global portfolios for our clients seeking long term capital appreciation
We decided 20 years ago to specialize in finding the best managers in the world, in each asset class, in each geography. We believe that generating consistent risk adjusted returns is hard, and therefore only the best managers can do it well over long periods of time. Thus, we select and monitor managers carefully, so that our client’s (and our) capital is invested at all times with some of the world’s top investors.
Portfolios are built based on individual client’s objectives, rigorous manager selection and diversified across asset classes. Regardless of asset type, we only invest in assets we understand and would like to own. Our obsession for risk versus reward make us responsible stewards of your capital.
How we invest Our Approach
M Square scours the world looking for real insights into the most attractive investment opportunities, and meeting with some of the best investors globally
We employ a deep, rigorous diligence process to seek out the best investment opportunities across asset classes. We have a truly global approach, which today encompasses equity, absolute return, credit, fixed income, real estate, private equity and venture capital strategies.
By following a large number of managers closely and doing our own research, we develop an asset allocation view which helps us create and maintain portfolios that have the staying power to withstand unexpected events, and avoid permanent loss of capital.
We don’t strive to predict market outcomes in the short term, therefore we diversify across asset classes, do not use leverage, and always invest in simple and understandable strategies.
We implement our approach through single-client portfolios and strategy-specific access vehicles.
How we invest Our investment process
M Square only invests in areas in which it can leverage its network and knowledge to source extraordinary talent, and ultimately generate real returns for its clients
Past performance is not indicative of future results, hence we focus on identifying managers’ attributes that are indeed likely to generate superior returns in the future. In order to do this, we spend from a few months to a year conducting research and due diligence before deciding to invest.
Most of what we look for is qualitative. In addition to our assessment of the investment strategy, talent and ability to make money, we want to make sure the managers’ interests are fully aligned with ours. We look for meaningful personal investments in the fund, a relentless focus on performance, a business mentality compatible with ours and have a strong preference for firms that only manage one fund, as opposed to fund “supermarkets”. Furthermore, we expect to be treated in the same way as we treat our clients – with transparency, and open and unrestricted access to the manager him/herself.
Once we make an investment, the monitoring process begins. This is as (or more) critical than selecting the right manager. We monitor funds closely to identify changes such as managers’ focus and dedication, growth in size of the fund, diversification of products, team turnover and many other aspects which were important for our initial decision to invest. Our goal is to be able to redeem for reasons that may cause future poor performance before it materializes.
How we invest Our Results
8.4% p.a. in USD
M Square Portfolio¹
5.5% p.a. in USD
MSCI World Index
4.4% p.a. in USD
HFRI FOF Composite Index
M Square has maintained its focus on research and relationships, creating a knowledge edge that has translated to net returns of 8.4% annualized in USD over 21 years.
The figures above represent combined average annual performance of vehicles in which the management was conducted by the founder of M Square Investimentos Ltda.’s ("M Square") resources management before and after its establishment, in the period from October 1998 through September 2019. Such vehicles were not distributed in Brazil. The information available in this website has been prepared solely for informational purposes and do not represent any kind of investment advisory, and thus cannot be used to that end, on the sole purpose of reporting the ongoing performance of the management executed by M Square. Nothing contained in this website constitute a request, an offer, or recommendation for purchase and sale of investment fund shares or any other transferable securities. Although every attempt has been made to ensure the accuracy of the information on this website , M Square, its administrators, partners, and employees, are not responsible for the accidental publication of incorrect information and are exempted of responsibility on any direct or indirect damage resulting from the use of the information contained on this website. The revenues disclosed here are net of the management fee, performance fee, and other pertinent costs, but are not net of taxes. It is recommended a research of, at least, 12 (twelve) months, to analyze the performance. The revenue obtained in the past does not represent any guarantee of future revenues. This website is not intended for the use of persons and/or individuals and/or legal entities which are lawfully prohibited to use it in any way contrary to any jurisdiction. This website content cannot be copied, duplicated, published, retransmitted, or shared, either in whole or in part, by any medium or means, without the express prior written permission by M Square.