Knowledge, discipline, and independence

Who are we?

Who are we?

Founded in 2006, Equitas is an independent asset manager focused on Brazilian equities. Our investment team is composed by experienced professionals, who have been working together for over a decade. Equitas Selection FIC FIA, our main fund, was created in July of 2010 and since its inception it has delivered 431% of net return vs 61% of Ibovespa.



How we work

Our single strategy approach is aimed at obtaining superior long term risk adjusted returns using extensive proprietary research and rigorous fundamental analysis. Our investment process has been tested and refined in different cycles and market conditions, combining depth of analysis, discipline and intensive risk monitoring.

Alignment of
Interests and Purpose

Alignment of interests with our investor base and a strong sense of purpose – To make the difference in investor’s portfolio return.

Our investment philosophy

01
01
Focus on risk control
Our primary goal is not to maximize return at all times, but to build an exceptional long term track record of superior risk adjusted return. To achieve that goal, our priority is to avoid excessive losses along the way.
02
02
Focus on a well defined circle of competence
We believe that limiting our investment activities to market segments and sectors where we accumulated experience and specific knowledge over the years we increase our chances of identifying superior investment opportunities.
03
03
Long-term oriented approach
Investments are made based on each company’s potential for value creation over a period of 3 to 5 years. We believe that with a long-term approach and focusing on fundamentals, we can benefit from convergence of market prices and intrinsic value over time.
04
04
Extensive proprietary research
The quality of any analysis is only as good as the information that supports it. We strongly believe in proprietary field research as a way of obtaining an analytical edge.
05
05
Focus on intrinsic value and margin of safety
We focus on obtaining a deep understanding of the value drivers and risks of the companies we invest in, as well as of the dynamics of the industries in which they operate. We look for margin of safety in our investments selecting stocks which prices are significant below their intrinsic value.
06
06
Search for positive asymmetries
To invest only in “high quality” companies regardless of their stock price can be a high risk proposition. We select investment opportunities with a positive asymmetric profile.
07
07
Out of consensus approach
Superior risk adjusted returns can only be obtained through the identification of inefficiencies that lead to deviations of prices from fundamentals. To identify these opportunities one must develop an out of consensus view.
08
08
Self criticism
In activities where uncertainty is a relevant factor, luck can be a significant driver of short term success. We believe that a solid investment process depends on the capacity of a team to analyze its successes and mistakes in an unbiased way in search for self knowledge and constant improvement.