Equity Opportunity Strategy

Our equity investment approach stems from robust academic findings and is based on our internal research process. The main characteristics of our approach are:

 

UNCONSTRAINED

 

Academic evidence shows us that active management, if performed correctly, helps to enhance returns and reduce risks. We often refer to a metric called “Active Share” to define how different our portfolio is managed from the overall market. Closet indexing, career risk and reputation risk are the main reasons why many money managers fail to beat their benchmarks.

 

CONCENTRATED

 

Evidence shows that an ideal level of diversification can be achieved with a portfolio of 30-35 positions.  This allows to benefit from the returns of positions that we have researched and selected while reducing the potential idiosyncratic risks associated with a few individual companies.

 

VALUE ORIENTED

 

Historically, the simple rule of buying a great business (highly profitable) at a good price (low valuation multiples) has consistently translated into superior investment returns.