North Square Investments is a UK-based independent investment management firm providing tailored solutions to institutional and wholesale clients. Founded in 2018, North Square has quickly established itself as a specialist in UK equity and multi-asset strategies. With expertise across UK equities, fixed income, and alternative assets, North Square aims to deliver consistent long-term performance and outstanding service to clients.
This article provides an in-depth look at North Square Investments – its history, investment philosophy and process, strategies and solutions, and culture. Key topics covered include North Square’s focus on active management, emphasis on environmental, social and governance (ESG) factors, range of equity and multi-asset strategies, and commitment to putting clients first. The discussion centers around how North Square leverages its specialist expertise in UK equities to meet client investment objectives while staying true to its identity as an active, high conviction investment manager.
With the UK asset management sector going through a period of consolidation, North Square stands out for its independent ownership structure and singular focus on generating alpha for clients. As investment management becomes increasingly passive, automated and commoditized, North Square represents a commitment to the art of active management grounded in fundamental research. For institutional investors and wholesale clients seeking a UK-focused investment manager with a well-defined approach, North Square presents an intriguing option combining pedigree, passion and performance.
North Square traces its roots back to established UK investment firms
North Square Investments came together in 2018 from the merger of two respected investment managers – North Square Capital and Broadstone. The new firm brought together complementary expertise in UK equities and multi-asset strategies under an independent partnership model.
North Square Capital was founded in 2000 as Odey Asset Management’s internal pooled fund business. It operated as an autonomous investment division focused primarily on UK equities and ran over £1 billion in client assets.
Broadstone was established in 2007 and offered a range of multi-asset solutions including blended funds, inflation-linked strategies, and alternative risk premia products. It managed over £1.5 billion in client investments through its offices in London and Boston.
The merged entity retained the well-regarded investment teams, processes and philosophies of the predecessor firms. North Square Investments is built on decades of experience applying active management, rigorous research, and conviction to investing in UK and global markets. With continuity in people and philosophy, North Square represents the best of both worlds.
Active, high conviction management is central to North Square’s identity
At its core, North Square embraces active management and fundamentally-driven investing guided by experience and insights. Its strategies are built around high conviction portfolios reflecting the strongest investment ideas of North Square’s managers.
In an era of passive investing and index hugging, North Square firmly believes skilled active managers can generate superior long-term returns through differentiated research and disciplined stock selection. By focusing only on their highest confidence positions, North Square’s managers aim to maximise alpha for clients.
North Square’s active approach underpins all its strategies – UK equities, multi-asset, fixed income and alternatives. Whether investing in individual stocks or blending asset classes, North Square’s managers follow a philosophy of concentrating on quality and valuation. They build portfolios through bottom-up analysis, refusing to compromise investment principles.
Across markets, North Square targets consistent outperformance through high conviction investing grounded in rigorous proprietary research. Its active management pedigree and singular focus makes it well-suited to meet the needs of discerning institutional investors.
Expertise in UK equities serves as the cornerstone
Although North Square offers diverse investment strategies, its foundation lies in UK equities. The firm has deep roots sourcing investment opportunities and generating alpha in the UK stock market.
North Square’s UK equity strategies are concentrated, conviction weighted portfolios. The investment team applies a disciplined, bottom-up driven investment process to build portfolios of 25-35 high conviction stock positions.
The approach combines fundamental analysis with valuation to identify quality companies trading at discounts to intrinsic value. Risk management and ESG considerations are integral to the process of constructing the portfolios.
The UK equity team has navigated the UK stock market through multiple cycles demonstrating consistent implementation of the philosophy and process. Focusing on a Best Ideas portfolio allows the managers to maximise stock selection skill.
With its pedigree and specialist experience in UK equities, North Square is well-positioned to capitalize on opportunities in an evolving UK market amid Brexit uncertainty. Its active management approach aims to outperform through stock selection as passive funds struggle.
An ESG-focused process aligns with values
North Square Investment incorporates environmental, social and responsibility factors across its investment process. It believes integrating ESG considerations leads to better informed decisions and long-term risk-adjusted returns.
North Square’s investment philosophy explicitly recognises the importance of ESG issues in security analysis. The firmengages directly with the management of companies held in portfolios on topics ranging from climate change to diversity and inclusion.
Portfolio managers assess a company’s ESG practices including carbon footprint, water usage, and waste management. They preferentially invest in companies with progressive ESG policies aligned with sustainable growth.
North Square also provides dedicated sustainable investing solutions for clients. Its Sustainable World Multi-Asset Fund integrates ESG analysis with rigorous multi-asset portfolio construction.
North Square’s focus on ESG reflects its forward-looking philosophy of evaluating all factors material to sustainable, long-term returns. Its values-focused approach considers both financial and non-financial criteria in investment analysis.
Multi-asset strategies balance opportunities and risks
In addition to its flagship UK equity offerings, North Square provides multi-asset investment solutions designed to deliver consistent returns and mitigate volatility.
North Square’s multi-asset range includes blended funds combining equities, bonds and alternatives in a single portfolio. The allocation between return-seeking assets and diversifying investments aims to optimise the risk/reward payoff.
The multi-asset team employs a globally unconstrained approach seeking the best opportunities across markets and asset classes. Portfolio construction integrates top-down macro analysis with bottom-up security selection.
Risk management is paramount in North Square’s multi-asset process which targets asymmetrical return profiles. Portfolios are dynamically managed with the flexibility to shift allocations as market conditions and risks evolve.
Whether investing in a standalone multi-asset fund or combining it with other strategies, North Square solutions can bring diversification, stability and downside resilience to a broader portfolio.
North Square Investments delivers active asset management solutions rooted in fundamental research and conviction. With specialist expertise in UK equities complemented by expanding multi-asset capabilities, North Square aims to provide consistent outperformance through high conviction, concentrated portfolios. Its independent partnership model and values-based approach seeking sustainable returns resonates with institutional investors worldwide.