Successful investors need a global perspective that considers a country’s fundamentals, economic business cycles, and trade and financial linkages. AMG Capital Management’s (ACM) philosophy of international investing combines dominant return drivers of country selection and sector selection to create a potent approach to global investing. ACM’s approach is based on two core convictions. First, understanding the business cycle of a specific country is essential to understanding long-term return potential. In other words, each country’s macroeconomics drives returns for its equity market over the long run. Second, a creditor’s approach to understanding a country’s business cycle is imperative to recognizing the primary trend in a country’s economy and the potential for that country’s equity markets. This pioneering global-investment approach is based on a solid macroeconomic framework that employs our unique fundamental and quantitative statistical analyses.
Country specific equities included in ACM managed foreign equity strategies generally have the following characteristics at the point of inclusion:
- A high probability that the business cycle has reached a positive inflection point
- Relatively strong long-term macroeconomic prospects
- Relatively low currency risk
- Attractive equity market valuations and sector exposure
This approach is deployed in the following strategy:
- ACM International Equity Portfolio Strategy
Please contact us for more information on these strategies.