Our KEY OBJECTIVE is to provide our investors with superior long-term, total risk-adjusted investment returns.
To do this, we aim to participate meaningfully in rising markets and mitigate losses in sharply declining markets through stock selection and equity allocation. Unlike traditional funds, we have the flexibility to de-risk by holding cash, and using index futures and options. Rather than try to eliminate normal market volatility, our main interest is to avoid large draw downs in severe bear markets.
We believe that an investment approach based on fundamentals , which integrates both bottom-up and top-down views , combined with valuation discipline, is the most consistent way of achieving quality risk-adjusted investment returns. Our fundamental research process strives to identify companies with businesses that meet our quality criteria, whilst seeking to attain a sound understanding of the sector landscape, business cycle and long-term drivers of shareholder value, which is then followed by a valuation assessment.
As we like to be able to take sizeable positions in our high conviction stocks, our portfolio tends to be focused, with typically between 20 to 50 stocks.