Portfolio Construction

Talson always endeavors to invest in a diverse set of opportunities with a highly select group of investments.

We invest across a variety of fundamentally based strategies, with process and alpha generation being core tenets.

  • These include strategies across long/short equity, event-oriented, credit, and macro and thematic investing.
  • On the short side our managers seek catalysts, including : value disruption, overvaluation, and/or obsolescence.
  • Research-intensive managers are key: in an evolving investment landscape, identifying opportunities that are not widely followed, in companies that, e.g., have specialized business models, and where complexity creates mispricing is critical; machine learning, leverage, consensus views, and copying of positions can lead to more severe drawdowns in market pullbacks; we therefore monitor closely.
  • As evidence-based investors, we place importance on understanding performance attribution and assessing the sustainability of returns when investing in managers.

We are long-term investors, seeking to generate strong risk-adjusted returns throughout the market cycle.

  • For disciplined, experienced long/short managers able to identify misunderstood situations in which there is a dislocation between the intrinsic value of assets and price, our experience has shown that their investments tend to work in their favor over time.