INVESTMENT PORTFOLIOS & APPROACH
Our primary objective is to build long-term relationships with our clients, rather than simply pursuing short-term corporate objectives. This approach allows us to offer a tailored service and to structure portfolios according to client’ individual requirements, rather than simply using generic models. Integrity is at the heart of everything we do.
Fundamental Value Investing
Our stock selection method is research-intensive, with a focus on undervalued stocks. To identify each investment opportunity, we concentrate our efforts on fundamentally-solid companies trading at discounts to their intrinsic values. We look for businesses with strong track records of performance that are temporarily undervalued due to some short-term event or phenomenon. They must have a solid history of cash flow generation, profitability, high return on equity, strong margins or earnings growth but are trading at a discount, relative to their own historical valuations or those of peers or the market.
Security Selection Strategy
Our investment process is primarily fundamentals-based, but when necessary we will combine it with the technical analysis approach. In these instances, the fundamental investing approach will be used to select a stock and the technical analysis paradigm will be utilised to determine when the stock will be purchased.
Our main focus is on ‘facts’. Once an investment candidate is identified, we will execute complete analysis of its industry, competitive position, management, business and operations, and an exhaustive review of its financial health. Companies that are selected for our portfolios are well- managed market leaders. They are financially stable with balance sheets that are strong, or showing improvement. They are high cash flow generators and catalysts that exist to improve their stock valuation. We only invest when we have full information, access to company management, and there is sufficient liquidity to enable us to add to or reduce exposure to the stock.
Portfolios under our management are constructed based on detailed efforts to understand and define each client’s specific investment goals and risk tolerances. This process requires experienced and skilled professionals which include our Senior Investment Consultants and Portfolio Managers.
Portfolios we manage comprise our best stocks and we want every position to have a meaningful impact on returns. We are however careful to ensure that as core investments, our portfolios are well-diversified. We take a prudent approach to managing individual security and sector exposures, and we continually monitor the stocks in our portfolios to ensure their ongoing suitability.