Quest Investimentos

The Company
The Investment Process

Stage 1 – Macroeconomic Scenario Insights

We believe that the understanding of global scenarios and trends through multiple sources, including external research, is a key aspect for achieving excellence in performance. For this reason, our economic research team plays both an essential and fundamental role. At Quest, insights are generated and consolidated by a team, meaning that various individual approaches and points of view are taken into account. During the first stage of our investment process, the background and profile of our founding partners enrich the discussions and projected scenarios.

Stage 2 –Validation with Research

Macro Scenario Insights originated during the first stage of our investment process are complemented by extensive and precise research, resulting in our Investment Themes. We carry out quantitative analyses, using our own economic database. For each Investment Theme validated by our models and analyses, we then establish a base case and further provide alternative scenarios.

Quest’s research capabilities include top down econometric modeling and a deep knowledge of Macro and Industry dynamics within the Brazilian economy. As a result of such high specialization and qualification of our team/personel, Quest is one of the few independent asset managers ranked by the Brazilian Central Bank among the Top Five Institutions in inflation forecasting

Stage 3 – Portfolio Construction

After macroeconomic insights have been validated and scenarios established, we build a single portfolio. We adopt a macro-global investment approach, using the concept of total return with variable use of leveraging and asset categories, according to the profile of each of the funds. The main features of our portfolio are as follows:

Daily investment committees	Review of all macroeconomic scenarios  Definition of asset and risk allocation in the short-term
Weekly macroeconomic and strategy committees	Review of basic and alternative scenario likelihood  Discussion of new investment ideas and strategies  Adjustment in hedging and strategic positions
Weekly equity analysis committees	Review of companies in the pipeline  Revaluation of portfolio investment cases
Weekly share portfolio committees	Review of portfolio allocation

Stage 3 – Portfolio Construction - Equities

Our equities selection process combines top down analysis with Discounted Cash Flow (DCF) valuation of eligible companies. Quest’s equities-research team is aimed at monitoring eligible companies from the portfolio, through visits and meetings with management.

Stage 4 – Monitoring

Monitoring at Quest is strongly linked to our quick response capacity. For short-term market movements, our practices are: