Baggot Multi Equity Portfolio

Baggot Multi-Equity Portfolio (“BME”) is an equal weighted equity basket which selects highest-ranking stocks according to various criteria and is rebalanced at the manager’s discretion. This strategy is ranked at 6 on the ESMA risk scale. The ESMA scale ranges from 1-7 (1 being the lowest level of volatility risk and 7 being the highest). ESMA 6 has a portfolio volatility of 15-20%. This portfolio is suitable for clients with a time horizon of two to five years.


Baggot Investment Philosophy:

Most stock market participants suffer from behavioural biases which lead to poor investment outcomes, in relative terms. We believe that a disciplined and diversified rules-based approach to stock picking will reduce the potential to make decisions being made due to behavioural biases.


Our belief is that share outperformance is commonly driven by factors or traits, such as Financial Stability, Value, Growth, Momentum and Quality which we try to identify and harness using a Quantitative approach to stock selection. At Baggot, we rely on factors that have proven over long periods of time to drive investment returns. We also believe that strong diversification normally helps to manage risk and enhances the potential to generate gains.


We do not claim to know what the future returns will look like for Equities but we have a strong belief that certain factors occur in tandem during periods where broad economic risk is most prevalent for equity investors. We take a quantitative approach to identify these factors and believe that we can harness those factors to effectively hedge against downside risk during periods of high volatility. Our aim is to outperform markets over the long term, while minimizing losses, particularly in major downturns, where possible. To achieve this aim, we may from time, invest in leveraged index ETFs for hedging purposes.


To execute this strategy, Baggot Investment Partners (“Baggot”) has entered into a research and investment advisory agreement with Conexim Advisor Support & Services (“Conexim”), who provide dealing and related services on and for your account. Under this agreement, Baggot provides ongoing research and asset allocation advisory services, which Conexim execute on a discretionary basis. Under this arrangement, Baggot also provide assessments of the suitability of the strategy for individual investors, which Conexim rely on when providing the portfolio management service.


Strategy Outline:

Our strategy is an Absolute Return Strategy which is broken into two sub strategies; one which is in direct equities and the other implements a hedging strategy, to dampen down volatility in turbulent market conditions.


We take a Global approach to Investment decisions, provided that market capitalization and trading conditions meet our standards.


The basket of stocks is chosen by using screening tools that are ranked based on the following criteria;

  1. Value – P/E, Earnings, Yield
  2. Growth – EPS, Sales Growth
  3. Momentum – Moving Averages, Relative Strength, Upgrades
  4. Financial Stability – Profit Margins, Piotrotski F- Score
  5. Quality Factors – Operating margin, Sales Growth, Free Cash Flow.


The portfolio can be 100% exposed to equities at any stage, in periods of low volatility. Should volatility levels increase, we may implement hedging to mitigate some of the risk where possible. For the hedging component of the strategy, various scenarios are taken into consideration such as Breadth data and Volatility Curves depending on the market volatility at a given time, lower risk asset classes such as Cash or Gold may be utilised or we may implement a hedging strategy using Volatility ETFs or Inverse ETFs to reduce risk.


Strategy Advantages:

  • The portfolio draws on a wide range of well developed, diversified and transparent investment strategies
  • Looks to deliver stable returns with a focus on minimising downside risk
  • Flexible approach allowing the manager to hedge against downside when conditions warrant it.
  • Holdings selected using models such as the Gray & Carlisle Quantative theory taking advantage of Quality, Momentum, Value traits.
  • Strong diversification helps to reduce risk
  • The portfolio is closely monitored on a daily basis.
  • Profits are subject to CGT at 33% and previous losses can be offset against gains. (Note; Clients are advised to seek independent tax advice)
  • Targeted is to outperform the benchmark (MSCI World Index Total Return Euro)
  • No Fixed Term contracts, no lock-in periods.

Contact Us

If you wish to invest in this product please contact us at or call 01 699 1590

This product is delivered in conjunction with:

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