Ahmed Khelifa from L’Allocataire is our Fund Selector of the Month
12 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Ahmed is the Chairman and Founder of L’Allocataire, a firm dedicated to democratizing access to institutional-grade asset allocation solutions. Under his leadership, L’Allocataire has established itself as a trusted partner, delivering innovative and tailored portfolio management strategies to meet the diverse needs of its clients.
Ahmed previously played a pivotal role in building and scaling a billion-euro asset allocation advisory for a family office in under five years. As the founder of the ETF Commission within the Société Française des Analystes Financiers (SFAF), he united key players from leading global ETF providers, fostering strong connections with Paris-based asset management stakeholders.
Before transitioning into his career as an Asset Allocator, Ahmed contributed to the successful launch and growth of the Paris subsidiary of a UK-based telecommunications company. He later completed all three levels of the CFA Program, equipping him with the advanced skills and expertise to excel in portfolio management and asset allocation.
Can you walk us through your experience in fund selection? When and how did you start your career in the financial sector?
I began my career in the financial sector in 2006 as a financial analyst at Scientipole Initiative, where I provided strategic guidance to start-ups during their critical early stages of development. My expertise in fund selection took a significant leap forward when I joined Alpine Value Advisory in 2016. There, I designed and implemented innovative asset allocation strategies, seamlessly integrating passive (ETF) and active management. Building on this experience, I founded L’Allocataire in 2021 with a mission to democratize access to institutional-grade asset allocation solutions, empowering a broader spectrum of investors.
Taking a brief look at your working life, what would you highlight about your professional career?
I would emphasize my ability to innovate by incorporating new asset classes and strategies tailored to meet the diverse needs of investors. Founding L’Allocataire marked a defining moment in my career, as it reflects my passion for delivering high-quality portfolio management to a wider audience. Additionally, my role as president of the ETF Commission at the SFAF allowed me to contribute to the advancement of best practices in ETF analysis and fund selection, promoting transparency and efficiency across the industry.
What aspects do you consider most important when selecting a fund for a portfolio? Which ratios and metrics do you consider most important when including a fund in your portfolio?
When selecting a fund, I prioritize key metrics such as tracking difference and tracking error to evaluate how effectively a fund replicates its benchmark. Liquidity is another crucial factor, ensuring ease of entry and exit. Performance ratios, like the Sharpe and Sortino ratios, are indispensable for assessing risk-adjusted returns. Additionally, transparency, cost efficiency, and alignment with the portfolio's long-term goals are vital considerations to ensure a well-rounded selection process.
What is the current asset allocation of your model portfolios? Which sectors or geographies would you highlight?
My current market outlook suggests a cautiously defensive positioning, given the asymmetry of risks skewed to the downside in equity markets. In terms of sector allocation, healthcare and renewable energy stand out as priorities due to their resilience and long-term growth potential. Geographically, North American small-cap equities present compelling opportunities, particularly as they may outperform in a stabilizing economic environment.
What mistakes are most frequently made in fund selection?
One of the most common pitfalls is neglecting to conduct a thorough analysis of total costs, which can significantly erode returns over time. Another frequent error is an over-reliance on historical performance, failing to account for changing market conditions. Lastly, investors often chase trendy or thematic funds without fully aligning them with their long-term objectives, which can lead to suboptimal portfolio outcomes.
What assets do you think will perform better in 2025?
North American small-cap equities are poised to deliver strong relative performance in 2025, particularly against the backdrop of a slowing global economy and more stable monetary policies. Their potential for higher growth, coupled with favorable valuations, positions them well in the current market cycle.
If you could only ask the fund manager one question, what would it be?
What are the key economic scenarios you foresee, and how is your portfolio positioned to capitalize on opportunities while mitigating risks across these scenarios?
How has the work of the fund selector changed in recent years? How do you think it will evolve in the coming years?
The role of the fund selector has evolved significantly with the adoption of advanced digital tools and platforms, enabling more efficient analysis and deeper insights. In the future, I believe the integration of ESG criteria will become a central focus, as sustainability becomes a priority for both investors and regulators. Additionally, advancements in artificial intelligence and machine learning will revolutionize predictive analytics, enhancing the precision and timeliness of fund selection decisions.
When you have free time, what do you like to do?
In my free time, I enjoy spending quality moments with my son and exploring subjects that deepen my understanding of human behaviour, particularly through psychology and cognitive sciences. These interests not only enrich my personal life but also provide valuable perspectives that I bring to my professional endeavors.
