One year after launching its absolute return fund and the announcement that it had entered into a distribution agreement for qualified investors with REYL Group, Stouff Capital has outperformed both the global equity markets and the hedge fund indices. It has bolstered client confidence with its disruptive product offering based on a quantamental strategy.
Founded in 2018 in Geneva, Stouff Capital favours a quantamental investment style – innovative in Europe – combining quantitative analysis with a human-led fundamental approach. This systematic process helps eliminate emotional behavioural biases associated with purely fundamental investment and improve returns under different macroeconomic conditions and market regimes.
Stouff Capital invests in international equities and, a year ago, announced that it was targeting returns of around 5-7% per year, with a conservative volatility profile of 3-5%. With net 2019 YTD returns in euros over 8%, a larger team and a twofold increase in its level of assets under management, its targets have been achieved in a market environment that remains uncertain, and is characterised by sharp swings. The advantage of this discretionary approach lies in its ability to follow trends while also reacting to inflection points, notably in volatile markets. What is disruptive about Stouff Capital’s offering is that no management fees are charged on any of its products. Only performance-related fees are collected.
Julien Stouff, CEO of Stouff Capital, comments: “In the context of our disruptive product offering, we see a clear synergy with REYL Group. In the current environment, characterised by high volatility, bubble fear and “quant quake”, our absolute return approach and our quantamental strategy mean that we invest based not on what we believe but on what we systematically observe.”
Francesco Genovese, Head of Asset Management at REYL & Cie Ltd, adds: “REYL Group’s decision a year ago to work with a talented hedge fund manager like Stouff Capital is bearing fruit. The first-rate expertise of the Geneva market in alternative management has allowed it to develop strategies that are among the best-performing worldwide.”