Ambienta X Alpha

The Ambienta X Alpha Fund is ran by Fabio Pecce (ex Man GLG) and is able to leverage Ambienta’s existing in-house research team expertise on Environmental Sustainability to develop a differentiated exposure to the theme. The manager employs a fundamental bottom-up investment research process, leading to a high conviction, concentrated portfolio of core long and short positions. Environmental Sustainability is a key driver of the investment strategy and is embedded in the manager’s portfolio selection process, acting as a powerful engine for idea generation. Furthermore, the internal ‘Sustainability & Strategy’ team use a proprietary three-tier sustainability scoring system allowing close monitoring of positions to the environmental theme. The investment universe is narrowed according to the following process: Approx. 5000 sustainable companies known to Ambienta, 1000 of which are publicly listed. Geographical and liquidity considerations are then applied and a focus list of around 125 companies is identified. Based on fundamental analysis and tangible competitive advantage a portfolio of approximately 25 long positions (typically have a strong competitive advantage and well positioned to capitalise on trends in sustainability) is constructed while short positions (c. 25) are selected based on sustainability disruption or by identifying “green-washed” companies with catalyst drivers, with both sides of the book taking into account risk and liquidity considerations.