philosophy

Our Philosophy

At Varenne Capital, our purpose is to deliver superior long-term returns with the minimum necessary risk-taking and maximum added value. This core belief is reflected in every aspect of our investment philosophy, and grounded in the unique value that comes from relying exclusively on proprietary research.

We employ multiple investment frameworks, each developed through years of research and managed by specialized teams. These frameworks, driven by disciplined and replicable processes, allow us to consistently capture opportunities.

We strictly avoid sell-side research, maintaining the independence of our strategies. Supported by advanced technology and custom-built systems, we efficiently manage vast amounts of data to make informed, risk-aware decisions aligned with our core objective of compounding long-term returns.
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High-Quality Businesses

The core of our strategy is centered on maximizing Long Equity exposure through a concentrated selection of high-quality businesses in global developed markets.

This approach is driven by our proprietary fundamental and behavioral databases, which generate original investment ideas.

Our specialized teams then contribute their highest conviction ideas to the portfolios, ensuring a focused and disciplined investment process.
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Other Frameworks

In addition to our core Long Equity framework, we offer the flexibility to combine up to three additional investment frameworks, tailored to each fund’s objectives:

The Short Equity framework focuses on generating uncorrelated returns through a core portfolio designed to perform well in adverse economic or credit conditions.

The Merger Arbitrage framework is designed to capitalize on announced and friendly deals in global markets, focusing only on the most compelling opportunities. This framework is deployed only in strategies that incorporate Tail Risk Hedging, as it aimed at financing all or part of its budget.
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Hedging

Our Tail Risk Hedging framework is specifically designed to hedge against extreme risk scenarios in equity markets.

Its primary objective is to mitigate the residual risks of our Long Equity positions within a predetermined budget.

We focus only on tail events—rare, severe market disruptions—aiming at reducing the risk of permanent loss of capital.

ESG

From its inception, Varenne Capital Partners has recognized the importance of its role as a long-term investor in influencing positive change. As a signatory of the UN Principles for Responsible Investment (PRI) since March 2020, we are committed to responsible investing.

We exclude from our investment universe companies with operations in areas such as controversial and nuclear weapons, pornography, tobacco, or companies which are found to be in breach of the UN Global Compact principles as covered and assessed by our providers. The criterion for exclusion is reviewed each year, with respect to the sectors considered and the percentage turnover exclusion limits. As such, some companies are automatically excluded from consideration before an in-depth analysis of the company’s fundamentals and ESG practices is performed.

Our full Responsible Investment and Engagement Policy is available below for more information.

More information