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Tikehau IMInvestment process
Developed by Tikehau IM, the investment process was designed to incorporate the company philosophy into action in our portfolios.
Our research team is the cornerstone of our investment process. To best assess the debt of companies that may represent future investment opportunities, Tikehau IM research team, conducts thorough analysis based on qualitative and quantitative approach, allowing us to build an internal rating system.
We pride ourselves in going beyond the traditional scope of analysis of rating agencies, enabling us to build a strong and personal judgment on each of our investments.
Tikehau IM's investment process extracts value from five main drivers
Research
- Target definition according to strict criteria.
- Ongoing contacts with sell side analysts.
- Active participation of new issuers roadshow, sectorial review conferences etc.
Targets are defined according to funds’ performance objectives and liquidity criteria. We leverage for that matter extensive ongoing contacts with sell side credit analysts, companies’ managements, brokers, traders and banks. This enhanced knowledge enables Tikehau IM to have a true competitive advantage in terms of both sourcing and investment ideas implementation. Also, this allows us to have access to particularly interesting private placement opportunities.
Credit analysis
- Fundamental and technical analysis (Macro & Micro).
- Bottom-up analysis of issuers through our owncredit analysis model (projections, stress testing, recovery analysis).
- Due diligence, covenants, annual reports etc.
Investment opportunities are analyzed in details via a bottom-up process. Our investment universe includes a vast range of European issuers which allows our funds to generate attractive returns. Performance derives from (i) efficient name picking when building our portfolios and (ii) potential arbitrages on a case by case basis.
Decision
- Diversification, liquidity and leverage criteria strict follow-up.
- Team Weekly Meeting to set main portfolio trends.
- Discretionary implementation of daily investment decisions by the fund management team.
- Bonds picking to create a shortlist for the portfolios.
Whilst we are volontarily opportunistic and reactive, investment decisions mostly emerge from our weekly meetings where main trends are collectively discussed and portfolio orientations assessed.
Execution
- The size and timing investment.
- Technical market analysis.
- Orders optimization.
Size and timing of investments are optimized to be consistent with funds goals and constraints. The transaction execution is built on an extensive and unique experience as well as technical analysis which favors trades optimization.
Follow-up
- Daily Newsflow follow-up (issuers, sector, markets).
- Quarterly results analysis, proprietary model update.
- Active participation and conference calls with management.
- Ranking of Sell-side analysts as sourcing ideas, rating agencies follow-up.
- Holistic assessment of existing position
Information and market flows are followed on a daily basis by the fund management team. Also, a quarterly financial analysisof the results along side operational performances of existing holdings analysis allowing for better optimization as well as potential arbitrage to implement in the portfolios.
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