Johann Schwimann and Renaud Labbé are our Fund Managers of the Month. Johann founded Seven Capital Management in 2006 and has been at the helm since its launch. In 1996, he created Rivoli Fund Management, one of the first alternative management companies in France, which he co-directed for ten years. Prior to this, Johann occupied a range of positions within the field of bond trading in Paris and London with SG Warburg and Daiwa Europe.
Renaud joined Yohann at Seven Capital Management in 2008 as Partner & CIO. Renaud started his career as an Interest Rate trader at CCF before moving to SG Warburg where he was in charge of the trading desk for the French Mid-Term Government Bonds from 1988 to 1995. Renaud then led government bond trading, first at BNP Milano, then at BNP London from 1995 to 2003, before he moved to Credit Agricole Paris to head the trading activities on Government Bonds.
When and how did you start your career in the financial industry? Did you have any other vocation?
We both started our career in the financial industry as Interest rates traders for the prestigious British Bank SG Warburg. Then following its take over by SBS in 1995, we both pursued our respective careers, although in slightly different sectors. Renaud remained an interest rates trader, and I started a Hedge Fund specialized in Futures, with a management approach based on momentum analysis . These strategies were known as CTA. We then joined forces again in 2006 to create Seven Capital in order to bring new Absolute Return solutions for Institutional and private wealth managers.
Why Absolute Performance Management?
Because we firmly believe that management must be active in order to most closely meet the essential objective of any investor, that is, over-performing in any type of market configuration and protecting capital during correction or crash phases. What sustains your drive within the industry?
How are you different – what is your methodology to achieve this?
- Seven Capital has developed management processes based on momentum for its entire range, so as to serve this “Absolute Performance” approach. Formerly reserved for “initiated” investors, such absolute performance management is now accessible through funds regulated under European law, management mandates, dedicated funds and certificates.
- Furthermore, the Seven Capital management process is totally systematic, which guarantees rigor, serenity and reproducibility, unlike so-called discretionary processes.
- Consequently, the Seven Capital management process enables investors to fully know in advance the risks they are exposed to in terms of volatility, maximum loss (max draw-down) and duration of recovery.
These three elements give Seven Capital products their differentiation and complementarity.
What instruments do you focus on at Seven Capital Management?
As we have a high concern for the liquidity of our products, we are only involved in ultra-liquid vehicles:
- Ultra-liquid futures in rates and equity
- Large-cap single stocks with high daily transaction volume
- French Treasury Bonds for liquidity.
What range of innovative solutions do you use portfolio management?
Our range meets the needs of investors for their different portfolio compartments :
- Core Portfolio: Active Flexible Diversified Fund with “Absolute Performance” approach.
- Stocks: Large capitalization equity European funds in Euro
- Absolute Performance” Management
- Market Neutral Equity Management
- Directional Long/Short Management
How does your historical record demonstrate the relevance of your approach?
The outperformance capacity and the solidity of our investment process have been tested in our various funds since 2007 with two major markets shocks (2008/2009 – 2011/2012). In both cases all the aims of our management methodology have been reached that is, over-performing in any type of market configuration and protecting capital during correction or crash phases. Controlling losses is a powerful long-term performance generator. It is therefore more important not to lose or to lose little than to seek performance at any cost.
Seven Capital Management is registered with The French Financial Markets Authority (AMF) and The Financial Sector Supervisory Commission in Luxembourg (CSSF).