Inflection Point Capital Management has a number of important differentiating capabilities which we believe help create a compelling value proposition for our clients.
Some key differentiators
IPCM’s founder and Chief Executive, Dr. Matthew Kiernan, played similar roles in creating Innovest Strategic Value Advisors and leading it for nearly 20 years. Innovest has been consistently rated the #1 research firm in the world in this field. Innovest’s former Managing Director of Research Andy White, and several of its former senior analysts have also joined Inflection Point Capital. The team’s in-house capabilities are further strengthened through a multi-provider research alliance, the Chairman’s Council of Global Advisors and insights from the “Club of Davos”.
Global emerging and frontier markets are critical to IPCM’s investment strategies, for both sustainability and financial performance reasons. One important ingredient in our information advantage in those markets is our long-standing strategic partnership with Solaron, a sustainability research boutique headquartered in Bangalore. Solaron is focused exclusively on emerging markets, and has an on-the-ground ground presence in several of the most strategic markets.
At Inflection Point Capital, the integration of the two critical dimensions of the investment process occurs from the very beginning they are not addressed sequentially, with one “bolted on” almost as an afterthought.
Over the past 10 years, IPCM’s principals have built and implemented strategies worth over $1.5 billion across multiple asset classes and geographies for some of the most sophisticated institutional investors in the world.
Our models have been evolving and refined for over 15 years. They have a strong focus on the quality of the strategic management in our potential investee companies. Our proprietary models and indicators have proven alpha generation capabilities, and feature such forward-looking attributes as “Innovation Capacity” and “Adaptability/Responsiveness”, which are generally absent from both traditional fundamental and sustainable investment models.
Prior to the proprietary, in-depth analysis of a focused “alpha pool” by IPCM’s in-house analysts, we avail ourselves of multiple sources of both financial and sustainability research. It is clear that each research provider, whether a sell-side investment bank, or a specialist boutique, has particular strengths, weaknesses, and perspectives. Through our research alliances we use a diverse, “best-of-breed” selection of research to help narrow the investable universe. We believe that it is both analytically and commercially prudent to avoid reliance on a single research or data source.
Sustainability insights will inform investment approaches and choices across all of our clients’ asset classes. Our initial suite of solutions includes hedge fund, fixed-income, and long-only equities offerings.
Our cutting-edge investment technology platform allows multiple financial and sustainability inputs to be synthesized in real-time.
Global Presence and on-the-ground capabilities
IPCM’s offices in six cities on three continents (Europe, North America, and Australia) facilitate
It allows 100% of our information advantage to be leveraged; it permits a more consistent risk/return profile; and it can have a greater impact on company behaviour than simple exclusion strategies. IPCM’s investment team has extensive shorting experience and capability.
The central focus of our investment research is to make a robust, systematic, and consistent assessment of what is arguably the #1 driver of companies’ financial performance the quality of their strategic management and execution capabilities. We have two primary competitive advantages in making those assessments: the forward-looking indicators in our proprietary 5-factor model, and the experience and expertise of our principals. Two of them have previously been senior partners and principal in such major management consulting firms as Deloitte, KPMG, and McKinsey. These backgrounds are somewhat unusual in investment management, and also strengthen our capabilities for constructive and effective “engagement”.
David Pitt-Watson was CEO of the well-respected Hermes Focus Funds, where engagement was a critical success factor. Several of the other IPCM principals also have extensive high-level engagement experience.
Using a proven and proprietary methodology, originally pioneered by Innovest, we provide our investors with a comprehensive calculation of the superior environmental and social characteristics and impacts of our portfolios.
A diverse, multi-disciplinary group of world-class players from academe, government, and civil society to advise the firm, on both financial/analytical issues and business opportunities.
Key strategic investors can become members of IPCM’s “Club of Davos” our exclusive, invitation-only investor forum focused on sustainability issues. Past attendees have included George Soros, Sir Nicholas Stern, Nobel Prize-winning Professor Joseph Stiglitz, Dr. Laura Tyson, the Norwegian Finance Minister, and several Fortune 100 company chairmen and CEOs. These discussions have already been and will continue to be important sources of investment insights and information advantage for the firm.
 Thomson/Extel global survey of institutional investors 2006, 2007; Investments & Pensions Europe, 2008.