Beyond Borders Investment Strategies, LLC: Company Profile

Background

Overview

Beyond Borders Investment Strategies, LLC (BBIS) is a boutique investment firm specializing in globally diversified equity strategies. Established in 2014 and headquartered in Brookline, Massachusetts, BBIS aims to reduce risk and achieve higher risk-adjusted returns over a medium to long-term horizon (3+ years). The firm accomplishes this by cost-efficiently allocating funds to equity markets in developed, emerging, and frontier countries through single-country equity exchange-traded funds (ETFs).

Mission and Vision

BBIS's mission is to provide investors with exposure to undervalued international markets, thereby enhancing portfolio returns while mitigating risks associated with home country bias. The firm's vision encompasses four primary goals:

1. Investment Goal: Achieving competitive returns over the market cycle by capitalizing on equity valuation mean-reversion and avoiding "value traps."

2. Impact Goal: Assisting countries in recovering from crises by stabilizing their stock markets and supporting economic growth.

3. Strategic Goal: Ensuring uninterrupted import supplies to the U.S. and global markets by aiding the recovery of crisis-stricken countries.

4. Impact/Security Goal: Strengthening global stability and security by reducing militant nationalism in affected countries.

Industry Significance

BBIS operates within the investment management industry, focusing on international equity markets. By leveraging single-country ETFs, the firm offers investors a diversified approach to global markets, particularly those that are undervalued or recovering from economic challenges. This strategy not only aims to enhance financial returns but also contributes to the economic stabilization of emerging and frontier markets.

Key Strategic Focus

Core Objectives

BBIS's strategic focus centers on:

• Global Diversification: Constructing portfolios that span developed, emerging, and frontier markets to mitigate risk and capitalize on global growth opportunities.

• Valuation-Based Investment: Identifying and investing in single-country ETFs of nations where equity markets trade at low valuations relative to their historical averages, thereby increasing expected returns.

• Crisis Recovery Support: Investing in countries undergoing or recovering from economic, financial, political, environmental, or pandemic crises to support their economic recovery and stability.

Areas of Specialization

BBIS specializes in:

• Single-Country Equity ETFs: Utilizing ETFs to gain exposure to specific countries, providing diversification and reducing company-specific risks.

• Global Macro Analysis: Conducting comprehensive analyses of global macroeconomic and political trends to inform investment decisions.

• Country-Specific Research: Performing in-depth evaluations of individual countries' economic conditions, valuations, and growth catalysts.

Key Technologies Utilized

While specific technological platforms are not detailed in the available sources, BBIS's investment approach likely involves advanced financial modeling, data analytics, and macroeconomic forecasting tools to inform their investment strategies.

Primary Markets Targeted

BBIS targets equity markets in developed, emerging, and frontier countries, focusing on those with undervalued stock markets or those recovering from crises. This includes nations across various continents, providing a broad global investment scope.

Financials and Funding

Funding History

Specific details regarding BBIS's funding history, total funds raised, recent funding rounds, and notable investors are not publicly disclosed in the available sources.

Utilization of Capital

The capital raised by BBIS is primarily utilized to:

• Portfolio Construction: Building diversified portfolios of single-country equity ETFs.

• Research and Analysis: Conducting global macroeconomic and country-specific analyses to inform investment decisions.

• Operational Expenses: Covering the costs associated with managing and operating the firm.

Pipeline Development

Key Pipeline Candidates

BBIS's investment pipeline focuses on:

• Undervalued Markets: Identifying countries with equity markets trading below historical averages.

• Crisis Recovery Opportunities: Investing in nations undergoing or recovering from economic, financial, political, environmental, or pandemic crises.

Stages of Development

The firm is in the active investment stage, continuously analyzing and investing in single-country equity ETFs that meet their valuation and recovery criteria.

Target Conditions

BBIS targets countries with:

• Undervalued Stock Markets: Equity markets trading at low valuations relative to historical averages.

• Recovery Potential: Nations recovering from economic, financial, political, environmental, or pandemic crises.

Anticipated Milestones

While specific timelines are not detailed, anticipated milestones include:

• Portfolio Rebalancing: Regular adjustments based on market conditions and valuation changes.

• Performance Benchmarks: Achieving competitive returns over the market cycle.

Technological Platform and Innovation

Proprietary Technologies

Specific proprietary technologies employed by BBIS are not detailed in the available sources.

Significant Scientific Methods

BBIS employs:

• Global Macro Analysis: Researching global macroeconomic and political trends to develop scenario forecasts.

• Country Analysis: Identifying and analyzing countries with low equity valuations and high expected returns.

• Portfolio Construction: Building diversified portfolios using single-country equity ETFs.

Leadership Team

Key Executives

• Vitaly Veksler: Founder, CEO, and Portfolio Manager. Prior to founding BBIS, Vitaly was Vice President at BNY Mellon Asset Management, responsible for analyzing macroeconomic, political, and business trends affecting various investment classes globally. He holds an MBA from The MIT Sloan School of Management and a Master of Arts in Law and Diplomacy from The Fletcher School at Tufts University.

Board of Advisors

• Lawrence F. Pohlman, Ph.D.: Director of Research at Adaptive Investment Solutions and Partner at NP Investment Research. Former Chief Investment Officer at BNP Paribas Quantitative Strategies, managing $3 billion in global quantitative equities. Holds five degrees from Columbia University, including a Ph.D. in Finance.

• Patrick J. Schena, Ph.D.: Co-Head of SovereigNet at The Fletcher School, Tufts University. Former Principal at Genpact-Headstrong Corp., leading the Investment Management Services practice. Holds a Ph.D. from The Fletcher School and additional graduate degrees from The Fletcher School and Boston College.

Competitor Profile

Market Insights and Dynamics

The global investment management industry is characterized by a diverse range of firms offering various strategies, including those focusing on international equities, emerging markets, and crisis recovery investments. The market is competitive, with firms striving to provide unique value propositions to attract investors.

Competitor Analysis

BBIS competes with other investment firms that offer globally diversified equity strategies, particularly those focusing on undervalued markets and emerging economies. Key competitors include:

• Infinity Capital Partners: An independent alternative investment management firm specializing in hedge fund of funds, private credit, private equity, and real estate investment strategies. Founded in 2002, it serves institutional investors, family offices, and high-net-worth individuals.

• Beyond Borders Group: A firm offering cross-border real estate investment opportunities, focusing on connecting Canadian investors with U.S. real estate markets. They provide educational resources and investment guidance tailored to Canadian investors.

Strategic Collaborations and Partnerships

BBIS has been added to the New England Impact Investor list by the New England Impact Investing Initiative (NEIII), recognizing its commitment to impact investing.

Operational Insights

BBIS differentiates itself through its unique investment strategy, focusing on undervalued international markets and supporting economic recovery in crisis-stricken countries. This approach not only aims to enhance financial returns but also contributes to global economic stability.

Strategic Opportunities and Future Directions

BBIS is well-positioned to capitalize on opportunities in undervalued international markets, particularly those recovering from crises. The firm's focus on diversification and crisis recovery aligns with global economic trends, providing a solid foundation for future growth and impact.