Lucas Lobo

Leblon Equities is an active manager which aims to preserve capital by adopting a long-term, value oriented investment philosophy based solely on bottom-up, fundamental research. They are very technical and tend to be close to company management and their controlling shareholders. The firm bases their investment process on knowledge, judgment, risk management, discipline and patience and believes that they need a deep understanding of sector dynamics, companies and people involved to find the best opportunities. They make all investment decisions based on their in-house research, mainly DPS models. They sell positions whenever they reach their target price and invest in options and indexes, using indexes as a hedge. Leblon Equities tries to be very conservative in their assumptions when constructing their portfolio, and aim to extract the relative value of their equity hedge fund. For their long-only book, they invest on a 12-24 month horizon. In their short book, they go short on stories they find expensive, preferring to hold cash. Their third strategy is an arbitrage book (mainly pair trades) where they may trade two different companies within the same factor, such as a holding against a subsidiary, or arbitrage between common shares and non-voting shares.