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investment strategy
Investment Strategy

Put simply, we preserve and grow our clients' capital through an active investment philosophy. We are in the business of making positive returns on we do not take refuge behind index tracking when evaluating our performance. This absolute-return driven approach is possible with the following key pillars to our vision:

Understanding: identify your requirements and set the guidelines, while only investing in underlyings we/you fully grasp

Sticking: Systematic and long-term approach driven by fundamentals, but disregard momentum exuberance

Tracking: active monitoring (do our “home-work”) with a prime emphasis on transparency from both the investee and with our  clients

 

Recognizing your needs

We work with you to help you understand the investment process and ascertain your risk profile. Whether it is through our conventional products or a tailor-made mix, we will seek to adapt your individual risk profile with a variety of solutions to build your portfolio. Once this is achieved we invest for the long-term, ignoring investment fashions.

Rigorous top-down approach

Our Investment Committee (IC) identifies broad structural developments and sets the course of action to follow within respective mandates. Whilst reviewing these guidelines periodically and adjust according to long-term macro-economic trends, the IC closely monitors market associated risk together with our Risk-Management team. Whereas the former sets general asset-class allocations;  the latter scrutinizes the risks related both to the IC’s  assessment and the combinations of securities chosen by our Fund Managers.

Active Stock Picking

- A Recipe of Value and Growth (Risk/Reward Balance)

Our stock picking process is research and valuation driven and leads to opportunities arising from biases inherent to the market place. We believe markets are not always rational and value is a significant component of the risk/reward balance. We are attracted to turnaround situations, undervalued and ignored stocks if there is considerable growth perspective in our long-term investment horizon.

While value is an important component to our “balance”, "the investor of today does not profit from yesterday's growth” (Warren Buffet). This is why we tend to favor market sectors with long-term potential (macro-analysis) and companies with sizeable development plans (micro-analysis); which in turn offers the greatest rewards when value is unlocked.

- Action Based

We believe the ideal blend exists in overlooked companies, often small to middle size with significant growth potential. For this reason, we prone an activist philosophy with regular visits to investee companies. In fact, we believe sourcing potential investments does not only happen behind a screen; as well as creating catalysts to speed up fair value recognition or encourage minority shareholder rights in existing positions.

- Arbitrage and Monitoring

Investments can’t be hold to infinity and we will shift them when they reach their valuation targets; or by constantly monitoring our opportunity/cost balances to take advantage of better ideas; whilst frequently monitoring corporate governance on which we put a prime emphasis.

 

Transparency

We are intolerant to lack of clarity in both the financials and business-models of our investee companies,  and act accordingly.
On the other hand, we understand investing is no-rocket science and even our philosophy might not offer the best returns in some periods. For this reason, clients need to recognize what is behind our long-term strategy and we put our primary focus for you to understand our investment processes.

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