Tempo employs an innovative, top-down approach to re-thinking global equity market benchmarks and exploiting market premia to produce better returns for investors over time.
Tempo’s differentiated and innovative approach is easily outlined in their three step investment process:
- Pick countries not stocks: Tempo concentrates on picking countries rather than stocks since we believe that countries are less volatile than their underlying stocks and are easier to forecast.
- Equally weighted approach: Tempo prefers a more equally weighted approach to portfolio construction over the standard market-cap weighted one. We believe the equally weighted approach spreads risk more evenly, is more robust and leads to better performance over time.
- Risk management: Tempo applies an innovative risk management system that seeks to preserve some of the portfolio capital through times of severe market stress by moving part of the portfolio into cash.
This same process is completed each month to build better beta over time.