Bear
The strategy of the BIZ Europa Bear Fund is based on qualitative models that evaluate and select the bonds using quantitative models that protect the portfolio from interest rate movements. The quantitative models use numerous macroeconomic indicators in order to be able to predict with greater sensitivity possible fluctuations in interest rates and thus adjust the portfolio’s exposure to them. The characteristics of the bond issues on which the management focus are mostly in a High yield rating score and accumulate the particularity of waiting for a revision of Outlook in a short interval of time anticipating that the qualitative revision by the rating agencies adds value that these companies already reflect.
Bull
The BIZ Europa Bull fund’s approach is based on a set of algorithms designed to optimally select stocks and simultaneously guarantee the limits of exposure to the market. The selection strategy is based on capturing high returns in growth trends of companies in relation to their sector of activity. This fund uses a method/algorithm commonly known as Boosted Decision Trees. This type of method is algorithms already commonly used in research, namely in particle physics in classification and regression problems due to their great robustness and large-scale information processing capacity. The exposure control model is based on variations of the main European indices to predict periods of growth (Bull Market) or market decline (Bear Market). Our risk management is based on a set of clearly defined rules and on the constant adjustment of the portfolio to changing market conditions.
