Macro Thesis

We begin our investment process by taking a step back from the day-to-day noise of the markets and focusing on what are the longer-term trends in the economy and the outlook. We look globally across countries and regions, assessing economic growth, inflation, credit and productivity among other factors. The macro outlook is especially important to identify risks that are often overlooked in the investment profession.

 

Identify Asset

With our view of the world, we set out to find investment opportunities at the asset class level, for instance in US High Yield bonds, or Emerging Market consumer oriented stocks. Our investment mandate takes us across the globe and into asset classes that may be ignored by conventional managers. We try to identify assets with strong long term prospects combined with reasonable valuation.

 

Fundamental Research

Once we have identified assets that look attractive, we take a deep dive into its fundamental attributes. For example, if we think that a certain sector is interesting, we will research the large companies operating within that industry to understand how they work, how the industry is structured and how reasonable are forecasts and expectations. This process can take as little as one or two days if we are familiar with the idea or as long as three months as we gather information from a variety of sources including conversations with company executives, analysts, public filings and industry publications. 

 

Market Analysis

Understanding all of factors that go into pricing assets in the financial markets is not an easy task. We use our years of experience to evaluate whether we should take an investment decision. We try to be opportunistic with purchases and sales, however we do not believe in market timing. Our market analysis isn't so much a profit generator; it helps is avoiding big losses when storm clouds are on the horizon. 

 

Portfolio Construction

We take an integrated, portfolio view of your holdings and make all investment decisions within that framework. What this means practically is that we think about what are your overall goals and risk tolerance and structure a portfolio around that. All investment decisions therefore are guided by that plan.

 

Investment & Portfolio Review

Once we buy an asset, we don't just forget about it. We actively track the asset and assess its performance, fundamentally and via market prices as the two are not always the same, in order to ensure it is still makes sense to be in your portfolio. Too many investors focus on what they are buying, but experience shows, it's when you sell that counts.

 

Risk Management

Managing the risk in your portfolio is often overlooked until the time it becomes really important. We employ a hybrid approach, looking at both mathematical derived measures such as Value at Risk (VAR), Beta and custom risk factor approaches along with a more common sense approach based on experience and our market research. Combined we aim to ensure your portfolio is protected during the times you really need it most.