What does “Ativo” mean?
The word “Ativo” means both “active” and “assets” in Portuguese—two words that aptly describe our investment approach
What is “Active Share”?
Active share refers to the difference between the asset composition of the fund and the composition of the benchmark. The greater this difference, the greater the active share. A study on active share found that a higher active share value is likely to yield higher returns against the benchmark. This result would imply that more actively managed funds have more skilled managers and therefore yield greater returns.
Ativo’s active share has been high in the past and remains so today. In particular, the active share for our flagship international products has ranged from the high 80th percentile to low 90th percentile.
What is “Ativo’s value add?
Ativo’s biggest value add is the ability to identify undervalued stocks across the world. Our origins are rooted in research and we have extensive experience with stock valuation. Our investable universe consists of more than 30,000 stocks of all capitalizations from over 100 countries. Unlike larger firms, given our size, we are small enough and nimble enough to respond quickly to new information and enter and exit positions with minimal market impact.