Charles River FIA is a Value Investing equity fund. We utilize fundamental bottom-up research to identify stocks that are priced at substantial discounts to conservative estimates of their intrinsec values. The portfolio's construction is based on margin of safety and a proprietary risk analysis framework.
The core of the fund's strategy consists of long Brazilian positions. However, the fund may opportunistically invest in assets listed outside of Brazil, capped at 20% of the portfolio, and engage in pair-trades.
Although allowed by the fund's regulation, the use of short positions and derivatives is infrequent.
The level of fund exposure to equities varies in accordance with the risk-return profile of the portfolio of invested equities. Typically the fund net exposure varies between 75% and 95%.