Inflection Point Capital Management has a number of important differentiating capabilities which we believe help create a compelling value proposition for our clients.

Some key differentiators

 
Deep commitment to the sustainable investment space, with a long performance track record and superior research capabilities

IPCM’s founder and Chief Executive, Dr. Matthew Kiernan, played similar roles in creating Innovest Strategic Value Advisors and leading it for nearly 20 years. Innovest has been consistently rated the #1 research firm in the world in this field.[1] Innovest’s former Managing Director of Research Andy White, and several of its former senior analysts have also joined Inflection Point Capital. The team’s in-house capabilities are further strengthened through a multi-provider research alliance, the Chairman’s Council of Global Advisors and insights from the “Club of Davos”.

Experienced global strategic partners delivering “best-in-class” expertise for each asset class

Global emerging and frontier markets are critical to IPCM’s investment strategies, for both sustainability and financial performance reasons. One important ingredient in our information advantage in those markets is our long-standing strategic partnership with Solaron, a sustainability research boutique headquartered in Bangalore. Solaron is focused exclusively on emerging markets, and has an on-the-ground ground presence in several of the most strategic markets.            

Full integration of financial and sustainability factors — from the outset

At Inflection Point Capital, the integration of the two critical dimensions of the investment process occurs from the very beginning – they are not addressed sequentially, with one “bolted on” almost as an afterthought.

Extensive experience developing and managing a variety of “sustainability-enhanced” investment products and strategies

Over the past 10 years, IPCM’s principals have built and implemented strategies worth over $1.5 billion — across multiple asset classes and geographies — for some of the most sophisticated institutional investors in the world.          

Cutting-edge sustainability models

Our models have been evolving and refined for over 15 years. They have a strong focus on the quality of the strategic management in our potential investee companies. Our proprietary models and indicators have proven alpha generation capabilities, and feature such forward-looking attributes as “Innovation Capacity” and “Adaptability/Responsiveness”, which are generally absent from both traditional fundamental and sustainable investment models.

Multiple research perspectives

Prior to the proprietary, in-depth analysis of a focused “alpha pool” by IPCM’s in-house analysts, we avail ourselves of multiple sources of both financial and sustainability research. It is clear that each research provider, whether a sell-side investment bank, or a specialist boutique, has particular strengths, weaknesses, and perspectives. Through our research alliances we use a diverse, “best-of-breed” selection of research to help narrow the investable universe. We believe that it is both analytically and commercially prudent to avoid reliance on a single research or data source.           

We utilize an industry-leading “Total Portfolio Performance” approach

Sustainability insights will inform investment approaches and choices across all of our clients’ asset classes. Our initial suite of solutions includes hedge fund, fixed-income, and long-only equities offerings.

 
State-of-the-art investment technology platform

Our cutting-edge investment technology platform allows multiple financial and sustainability inputs to be synthesized in real-time.

Global Presence and on-the-ground capabilities

IPCM’s offices in six cities on three continents (Europe, North America, and Australia) facilitate in-depth regional research, as well as more immediate client contact. Also, strong knowledge networks with NGO’s on the ground.         

Our capacity to take short positions creates at least three benefits for our investors

It allows 100% of our information advantage to be leveraged; it permits a more consistent risk/return profile; and it can have a greater impact on company behaviour than simple exclusion strategies. IPCM’s investment team has extensive shorting experience and capability.           

Management Consulting Expertise

The central focus of our investment research is to make a robust, systematic, and consistent assessment of what is arguably the #1 driver of companies’ financial performance – the quality of their strategic management and execution capabilities. We have two primary competitive advantages in making those assessments: the forward-looking indicators in our proprietary 5-factor model, and the experience and expertise of our principals. Two of them have previously been senior partners and principal in such major management consulting firms as Deloitte, KPMG, and McKinsey. These backgrounds are somewhat unusual in investment management, and also strengthen our capabilities for constructive and effective “engagement”.         

Experience in effective, board-level “engagement”

David Pitt-Watson was CEO of the well-respected Hermes Focus Funds, where engagement was a critical success factor. Several of the other IPCM principals also have extensive high-level engagement experience.

We generate — and quantify — a notional “Sustainability Dividend”

Using a proven and proprietary methodology, originally pioneered by Innovest, we provide our investors with a comprehensive calculation of the superior environmental and social characteristics and impacts of our portfolios.         

Chairman’s Council of Global Advisors

A diverse, multi-disciplinary group of world-class players from academe, government, and civil society to advise the firm, on both financial/analytical issues and business opportunities.           

The “Club of Davos”

Key strategic investors can become members of IPCM’s “Club of Davos” — our exclusive, invitation-only investor forum focused on sustainability issues. Past attendees have included George Soros, Sir Nicholas Stern, Nobel Prize-winning Professor Joseph Stiglitz, Dr. Laura Tyson, the Norwegian Finance Minister, and several Fortune 100 company chairmen and CEOs. These discussions have already been — and will continue to be — important sources of investment insights and information advantage for the firm.

Next: Meet the Inflection Point team