Our Investment Philosophy

As students of the markets and economic success stories, the following points sum up our philosophy on investing, which can be implemented regardless of the overarching investment strategy, style or underlying asset class:

  • Success in investing requires courage and discipline
  • Compounding returns over time
  • Investment positions should always be measured on a risk-adjusted basis
  • Risk equals the permanent loss of capital
  • Intimately know what you own and why you own it
  • Keep Investment costs low

We don’t believe we have a superior ability to time the market, however, one needs to know when to be aggressive and when it is time to be conservative. We believe in prudent diversification across asset classes and sectors, however, we are not afraid of taking concentrated positions when the levels of conviction warrant it.

We strive to acutely understand where we are in the investment cycle,  and evaluate market behaviour without emotion.  We do not obsess over short-term comparative benchmarking or relative performance, but rather on the risks and positioning of the portfolio. Our client portfolios tend to have an extremely low level of activity or churn, and in doing so, we reduce the friction costs of buying and selling instruments.

Our Investment Process

1. Meeting

It is critical that we have a holistic picture of both your financial goals and the other aspects that are most important to you.

In doing so, we establish a clear understanding of the following:

  • Mandate (objective). 
  • Capital Growth vs Income
  • Risk appetite and return expectations
  • Medium and long term financial goals
  • Retirement planning

2. Investment Research

Our internal investment research is a continually accumulating process. It evolves and improves as we analyse new prospects and reflect on previous research and investment decisions.  Our own proprietary research is bolstered with subscriptions to various sector-specific research and access to a vast number of sell-side brokers reports.  

The key components of our internal process include:

Idea Generation

The ‘Always on’ activity of idea generation sources insights and possibilities from company filings and transcripts, industry reports, fund managers letters, various investing publications and conferences, as well as a fundamental equity screening process.

Capital Market Expectations

We base our recommendations and actions on investment research and capital market expectations according to the risk and return characteristics of  the underlying asset classes and portfolio constituents.

3. Portfolio Construction

Our process culminates in an investment solution that is aligned with the stated investment goals, taking into account the client-specific risk appetite and return expectations. Diversification across asset classes, geographies, currencies and sectors is imperative to achieve the best possible risk-adjusted outcomes.