Investment process
We start from an Investable Universe of about 5000 companies.
Step 1: Screening
Identify companies with direct or indirect exposure to the hydrogen theme. This results in about 300 companies. In addition to the 300 listed stocks linked to hydrogen, we follow more than 100 private companies that represent a potential investment pool and that can give us good indications on the evolution of the sector.
Step 2: Relevance
Select companies with sufficient current and potential exposure to the hydrogen theme to benefit from its growth potential. This results in about 150 companies.
Step 3: Technology
With the help of our experts, evaluate the technological
potential of each company to focus only on the best. This results in about 100 companies.
Step 4: Financial Analysis
Assess the financial situation and valuation of each company.
Retain the strongest and those whose valuation is not excessive.
The end result is 50-60 companies.
Portfolio construction
Each stock entering the portfolio is given a 5% weighting which will be adjusted to meet our investment and risk management criteria
Maximising exposure to the team
At least 50% of the portfolio's consolidated activity must be related to hydrogen
Diversification across the hydrogen value chain
No link in the value chain shall exceed its target weight in the portfolio
Maximising potential while controlling risks
• Investment in small caps with more limited liquidity
→ sizing of each position
to be able to sell it without
weighting on the market
• 5% to 15% of the portfolio
invested in micro caps
→ the « call options » of
the strategy
Limiting weights
• Weight of a security in the
portfolio will not exceed
7.5%
• Performance of the
portfolio is not dependent
on few positions
→ not a «closet tracker»
• Gradually take profits
on positions that have
outperformed