Convex Capital Management

Investment boutique

with fundamental research and risk management

Research is core in everything Convex does and Convex's boutique culture fosters lateral thinking. Convex believes in creating value through skills that come from institutions. Convex Capital Management is located in Chicago metropolitan area and close to the hub of financial firms and great talent pools.

History

Convex's root came from institutions with its founder, Saumen Chattopadhyay, CFA who spent a number of years with large institutions and held leadership positions. Convex's investment philosophy is shaped by institutional portfolio management experience and reasoning of success and failure of many investment managers from oversight responsibilities. Convex carries an institutional quality in its organizational process.

Strategies

Global Dynamic Risk seeks absolute return across global markets

Opportunistic Global Dynamic Risk seeks higher returns with higher risks across global markets

Global Tactical Income seeks 4-5% yield with capital preservation in bear markets

Six Dynamic Choice Portfolio strategies seek returns corresponding to target risks of clients

S&P Enhanced invests in S&P 500 Index with 10 GICS sectors

Dynamic Alternative Income seeks income from alternative asset classes

 

Clients

Convex's target clients are institutions, Registered Investment Advisers (RIAs)/Broker-Dealers (BDs) and high networth individuals who look for unique investment strategies. Convex's goal is not only place their clients first but go an extra mile to become partners. Convex adds value through  research and portfolio management skills and not luck. Convex seeks a long-term partnership with its clients with innovative products and unrivaled service.

Unique Blend

Some managers are purely fundamental and some are quantitatively driven. Not one way is right for every market cycle. Convex blends the two together in a unique way that aims to avoid behavioral biases and unrealistic assumptions. The firm's investment process is driven by fundamentals but implemented systematically. Convex actively seeks risk management with dynamic volatility adjustment and event-based scenario analysis.

Identify Opportunities with proprietary risk ratings

Convex identifies opportunities based on proprietary research and economic analysis. Convex Proprietary Leading Economic Index (CPLEI) provides a risk rating every month for 30 countries around the globe. The team aggregates country ratings to regional ratings and an overall global rating. The goal is to capture inflection points in the economic and business cycles and identify countries and regions with above-average trend line growth. Risk ratings govern firm's allocation decisions across all strategies.

 

Adapt with dynamic portfolio construction

Convex's portfolio construction changes based on proprietary evaluation of macroeconomic environment. The team uses various portfolio optimization techniques that vary by global risk rating to avoid tail risks in the portfolio, especially in a declining economic environment. To achieve proper diversification, the PMs reshuffle portfolio mix as correlations change between asset classes. Convex tries to avoid unrealistic model assumptions and follow a non-parametric Bayesian approach.

Manage Risks with vol. & event risk management

Convex takes a dynamic approach to risk management. The team's primary goal is to align risk allocation and  have specific volatility targets for different market environments.  The Convex team estimates daily volatility for various markets using proprietary techniques and consider adjustment when necessary. Convex's event- based risk management includes probabilistic scenario analysis and tail-risk forecasting. The team attempts to manage current risk in  clients’ portfolios as well as prepare for the future.

The Edge

Why Convex? The edge of Convex is in seamless integration of different parts of investment process toward a holistic and repeatable approach that seeks stability and consistency over various market cycles. The team understands the interconnected between economic cycles of countries, business cycles of companies and capital markets. Convex's goal is to create a dynamic  portfolio that constants monitors and adapts with global capital markets, levels of volatility as well as emergence of tail-risk events.This is what Convex offers in their investment strategies. 

This is Convex's passion. This is the edge.