We believe that it is necessary for investors to understand and support the investment philosophy of the asset manager that they trust with their investments. Hence, we try to state and communicate our investment philosophy as concise and clear as possible. These main principles embody our investment philosophy.
- We are bottom up investors investing independent from the size in market cap and focus on equities that are underpriced relative to their intrinsic or fundamental value
- We seek to identify underpriced stocks to their intrinsic value. These mispricings may be caused by, among other things, general market conditions, company-specific issues that are temporary, changes in management or strategic direction, or a variation between our assessment of a company and that of other market participants
- We thoroughly analyze companies we are investing in, but also the price we are willing to pay for them
- We stick to a disciplined investment strategy, investing in companies with a strong franchise, good business qualities and shareholder-oriented management
- We evaluate risk according to financial strength, excess cash flow and predictability of cash flow based on unique fundamentals, rather than defining risk by the volatility of a stock.
- We seek to hedge at certain periods our equity investments with short positions in indices or long put options strategies to mitigate tail risks
- We strive to be well-diversified and our main objective is to preserve your purchasing power by outperforming equity indexes over a full market cycle
- We focus on capital preservation via long put options to mitigate market risks over a 3- to 6- months horizon – active partial hedge