The Investment Management process combines :
• Indexation for up to 80 % of the Fund's assets
• Leveraging, with a maximum of 1.5 to 1
• Stringent Risk Controls, with constant stop losses.
• Stock picking and IPO's, for up to 40 % of the fund's assets
• A key feature of the Investment process is the Manager’s
ability to be partly or totally invested in cash in the event of
extreme market conditions, in order to preserve the assets of
the fund.
The Investment Selection and Timing process is based on a Top down
macro-economic and valuation driven allocation process that hinges
on:
• In-depth Macro-Economic and Industrial analysis
• Tri-dimensional Asset Class and Securities Valuation analysis
• Market Psychology, Flow of Funds and Technical analysis
• Valuation is, in essence, a concept of relative nature.
• The Manager performs valuation analyses with respect to:
• The intrinsic value based on underlying fundamental criteria
• The value relative to its peer group
• The value relative to its own trading history
• Phenomena of valuation expansion or compression can be long
lasting and substantial in terms of magnitude. Identifying them is
key to a successful asset allocation process.
• Asset price behavior is determined more by the community of
investors’ perception of the evolution of the underlying
fundamentals, than by the absolute levels of the fundamentals.
• Analyzing the invested position of the consensus, the factors that
could influence supply and demand, and turning points in the
trends of asset classes or specific securities is essential to
optimizing the risk-reward of any investment.
• Trending markets are always more profitable than trading markets
and the investment manager concentrates on medium term trends
The purpose of the fund is to generate positive returns regardless of
market conditions.
• A key determinant of performance generation is the ability to avoid
losses in case of unforeseen events, and for that purpose, strict
risk management rules are followed at all times:
• The size of any position is a direct inverse relation to the
volatility of the security or asset class
• CONSTANT Stop Losses on EVERY position, managed
dynamically
• Keep the number of individual positions to a manageable
amount