Our investment objective is to protect and enhance our clients’ real wealth over time, whilst ensuring the level of investment risk taken is appropriate and agreed. Our investment philosophy is a set of core investment beliefs by which we manage our clients’ portfolios, which in our view, enables us to achieve our investment objective. These are:
Global, unconstrained, multi-asset investing achieves superior risk adjusted returns
Markets are inefficient and good fund managers can add considerable value
Portfolio risk must be actively managed through the investment cycle
Supporting our investment philosophy is a set of core investment principles which are a product of our extensive and diverse investment experience:
Markets are inefficient
Asset prices are inefficient and good active managers can and do exploit pricing anomalies to add value sustainably. In order to outperform materially, fund managers must often make investment decisions that sit outside the prevailing consensus view.
Cashflow and catalyst identification are important components to successful investing
Understanding the sensitivity of a company’s cash flow (and, therefore, balance sheet) to various end market assumptions leads to better investment decisions. Without a catalyst that is able to demonstrate value to a wider audience, a cheap stock is likely to remain so.
Micro dominates Macro
Market insights identified at the stock level provide a clear information advantage when determining asset allocation. Determining the right investment vehicle to access an asset class has scope to add considerable value.
Continual analysis and appreciation of downside risks are key to ensuring appropriate diversification across geography, sector and asset type. Investment positions should be commensurate with the level of conviction held.
Generalist fund managers make better decisions than teams of specialists
Generalists that take a holistic view of markets tend to make better decisions than large teams populated by specialists that operate in narrowly defined niches. Fund managers must be empowered to take decisions in a timely manner.