Our Methodology

OUR CORE
PRINCIPLES

 

Four fundamental principles guide our investment management process. We strictly prioritize management of absolute risk while adhering to an agreed upon performance-related benchmark defined by the client. We believe in the unsurpassed value of fundamental analysis capable of identifying the most undervalued assets around the globe. We consistently filter out any market noise and trending investment themes to avoid overcrowded and risky trades, while at the same time ensuring we invest only in liquid enough securities or investment vehicles that provide full transparency.

We firmly believe that markets are inherently inefficient. This creates opportunities to generate significant value for investors by taking advantage of market excesses, through an active and disciplined investment management approach.

Benchmark Aware

not Benchmark Driven

Fundamental Reasoning

not driven by Behavioral Bias

Disciplined Selection

not influenced by Market Noise

Active Approach

not simply Streamlining Operations

Investment Guidelines

OPTIMISE RISK-RETURN REWARD

Aiming to deliver superior risk-adjusted returns over time. Variability of portfolio returns (risk or volatility) is a necessary but often overlooked performance component. We manage the volatility of the portfolio in order to distill safety and robustness of the managed assets

BEING DISCIPLINED

The greatest investment risk is paying too much for an asset. We are benchmark aware but not benchmark driven, and we assign greater impor tance to the management of absolute and not relative risk.
Rule #1: Avoid losing money.
Rule #2: Don’t forget Rule 1

AVOID MARKET NOISE

Capture any uncovered investment oppor tunity by favoring out of consensus and contrarian positioning, while at the same time avoiding
distracting market noise. Remain adaptive to surrounding dynamics. Timing matters only in short term

EXCLUDE RANDOM BETS

Every single investment decision should be based on a solid economic rationale in order to minimise the role of luck. Use skill to maximise the “rationality and economic judgement” factor

OPT FOR TRANSPARENCY

A ssessing a global investment universe, with no a-priori restrictions on geographical markets, currencies or types of investments and asset classes, as long as certain strict financial repor ting and investor disclosure requirements are met

EXPLOIT MARKET INEFFICIENCIES

We believe that markets are inherently inefficient and create opportunities until normalised equilibriums are found. Constantly looking for deeply
undervalued assets and securities across all markets, sectors and geographies

Investing is a lively and dynamic procedure. Although we are cognizant of some of the merits that passive strategies can offer, we are firm believers that investing should be a close reflection of a constantly changing world and economic environment. Trough and peaks, along with a series of other unpredictable events are to experience in almost any type of cycle, economic or not. Through our active approach, we aim to alleviate the exposure to such adverse events and assure a smoother value development and superior risk-adjusted performance over time.

Investing. As it should be

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OUR INVESTMENT APPROACH

We are firm believers in the merits of macro and microeconomic analysis, and this also defines the approach we apply to our investment management activities. We have developed three powerful proprietary tools for the successful execution of our investment strategies:

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Proprietary Toolkit

QUANTAMENTAL METHODOLOGY

combines advanced quantitative and fundamental economic analysis

MODULAR APPROACH

a series of model portfolios (ELIA modules) reflecting our evolving market views on every major asset class and currency

V.A.L.U.E. FRAMEWORK

holistic and refined fundamental methodology for locating attractive, and undervalued companies across various market geographies and sectors

QUANTAMENTAL

ELIA QUANTAMENTAL is a proprietary methodology we have developed over the years, guiding our investment decisions in every phase of our analysis.

As the name implies, this methodology combines advanced quantitative and fundamental economic analysis. Our QUANTAMENTAL framework combines dynamic technical indicators, asset valuation techniques, leading macro mapping, advanced statistics, implied volatility, market sentiment, use of alternative data, and momentum metrics.

At portfolio construction level this investment framework ensures that the optimal composition is achieved both at asset class, as well as at single security level.

Our Quantamental framework empowers us to properly assess market dynamics and develop timely action plans

Implied Volatility Analysis

Advanced Statistical Metrics

Sentiment & Momentum

Alternative Data

Dynamic Technical Analysis

Correlation & Optimisation Testing

Leading Macroeconomic Indicators

Asset valuation

MODULAR 

We have designed a series of model portfolios (ELIA modules) reflecting our evolving market views on every major asset class and currency. Each module comprises a select list of what we deem as the most undervalued securities in their respective category. This selection is the result of a thorough analytical process based on our Quantamental framework and aims to optimise the composition and risk-return profile of each particular module in a dynamic fashion.

We can meet the narrowest or most specialised client mandates

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V.A.L.U.E. FRAMEWORK

At the heart of the ELIA modular approach lies our framework of analysis called “V.A.L.U.E.”. This is a holistic and refined fundamental methodology of locating attractive, and undervalued companies across various market geographies and sectors.

The “hidden” fundamental value of these companies is being assessed against their historical and implied volatility profiles. The combination of these factors provides fairly good signals with regard to their upside potential as well as the best way to initiate a new position in these securities.

Volatility Adjusted Long-term Undervalued Equities

The V.A.L.U.E framework has its foundation on six fundamental attributes that, in our view, define a successful business or a valuable company from an investor’s perspective. The level of V.A.L.U.E is determined across six dimensions combining strategic, financial, non-tangible, and ESG-related metrics.

V.A.L.U.E. Pillars

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SMART PREMIUM 

We utilize a set of additional investment strategies and instruments to expand sources of return while, at the same time, improve the overall risk/return reward profile of the portfolio. These strategies capitalize on smart use of financial derivatives and special credit instruments. Although these instruments have been available to global investors for a long time, they are absent from most conventional and standardized mandates. Instead, they are an indispensable component of the most sophisticated and institutional portfolios.

Our smart premium
strategies lead to
significant reduction
in portfolio volatility
compared to conventional
passive approaches

Call Writing Strategies

Selling covered call options of major indices to hedge risks, without giving up the upside potential of the underlying investments. Premium can occasionally be used for the purchase of zero cost insurance (put options).

Advantages

Lower overall portfolio volatility

Enhance the portfolio’s risk / reward profile

Add yield

Put Writing Strategies

Selling put options on single securities instead of opening direct investment positions on these names. This strategy allows us to keep the full cash aside while still benefiting from an upside move along with the creation of a downside safety buffer.

Advantages

Invest without deployment of capital

Enhance the portfolio’s risk / reward profile

Downside buffer

Special Credit Investing

Take advantage of inherent premiums offered by various credit instruments such as loans, insurance-linked bonds, subordinated debt, preferred stocks, mortgage-backed securities, senior or mezzanine MBS, CoCo Bonds, and distressed credit.

Advantages

Increase portfolio diversification

Add independent streams of revenue

Extract yield premiums

Eveline Bieler

Independent Advisor to the Board

Eveline is an Independent Advisor to the Board on multiple corporate topics. Eveline brings an extensive experience in supporting wealthy families in their banking and wealth management matters. Prior to joining ELIA Investment Advisors, Eveline had worked for 10 year at key client desks of UBS, Bank Morgan Stanley and Goldman Sachs in Zurich, and has also spent two years in Hong Kong as an Analyst for a Boutique Financial Advisory, Private Equity & Risk Management Firm. Eveline holds a specialist certificate in Asset Management from Hong Kong Securities and Investment Institute and has completed a Master’s Degree in Financial Consulting and the Certified Financial Planner (CFP®) programme at Zurich University of Applied Sciences.

James Bejjani

Senior Partner

James has over 17 years of experience in Portfolio Management and Special Situations in the United States, Europe and the GCC. His areas of expertise span across a range of asset classes including Private Equity and Venture Capital. Prior to joining ELIA Investment Advisors James Bejjani served as Director of a large Geneva based multifamily office, and member of its Investment Committee. Earlier, James had spent eight years at M1 Group, a Single Family Office, where he was a Portfolio Manager. In that role he led M1’s Fixed Income investment activities in public (credit and capital structure investing) and private companies in both Developed and Emerging markets. Before that, he worked at Macquarie Funds Group where he had dual responsibility as a Trader and Analyst for a multi-billion dollar Fixed Income portfolio for institutional clients. He was also previously an Associate Director and an Institutional Investor ranked Strategist at UBS Investment Bank in New York. He began his career on Wall Street at Mortgage Industry Advisory Corporation (as a Quantitative Analyst). 

James earned his MS in Financial Mathematics from Warwick Business School in the UK, his BA in Economics and minor in Mathematics from the American University of Beirut and his double LLB degree in Private and Public Law from Saint Joseph University. He also completed an executive program at the Wharton School of the University of Pennsylvania. In addition, James is a member of the NY based Fixed Income Analysts Society.

Anton Schmidt

Managing Partner

Anton has spent over a decade covering UHNW families and individuals. He dedicated his professional career to providing tailor-made and differentiated investment advice across major asset classes and whole range of financial instruments. Most recently as an Executive Director and Private Wealth Advisor in the Private Wealth Management division of Goldman Sachs in Zurich after joining from Morgan Stanley in 2012, where he started as an analyst in 2010. His prior professional experience includes Bloomberg in London and Volkswagen in Wolfsburg.

Anton holds a Business Administration Diploma (MSc) with specialisation in Banking & Finance from Mannheim University, Germany and a Postgraduate Certificate in Finance from London School of Business and Finance, UK.

Christos Kontos CFA, FRM

Founding Partner & CEO

Prior to setting up ELIA Investment Advisors, Christos worked as an Executive Director at the Wealth Management divisions of Goldman Sachs (2014 – 2019) and Morgan Stanley (2007 – 2014), offering an institutional approach to private client investing. Before entering the world of the two large Investment Banks, Christos served as a Senior Associate for Swiss Capital Alternative Investments (currently StepStone Global), a Hedge Fund company based in Zurich, dealing with the design of specialised investment solutions for pension funds and insurance companies. Prior to moving to Switzerland in 2005, he worked in the Fixed Income Derivatives department of Intesa San Paolo IMI in Milan, and Equity Trading at NBG Securities and Alpha Bank in Greece.

Christos is a holder of the Certificate of Business Excellence from Columbia Business School in New York and holds an MBA from SDA Bocconi in Milan, an MSc in Finance from Strathclyde University in Glasgow and a BSc from Athens University of Economics and Business. He is a certified risk manager (FRM) by the Global Association of Risk Professionals (GARP) and holds the Chartered Financial Analyst (CFA) designation.