We look for investment opportunities that are likely to have much more upside than downside, and are trading at an attractive valuations.
We define risk as the probability of permanent capital loss for our clients. If we can assess this, and get enough of a margin of safety, we will consider an investment in our funds.
We compare ideas across a range of asset classes and opportunities - fixed income, local and global equities - looking for the best chance of providing a return above inflation with the right level of risk. We are more interested in the absolute number that clients achieve in performance than any relative measures.
We will always have a long-term approach in our investment process and decision making. This is the bedrock of our unconstrained approach.
Our actions are essentially guided by three basic principles:
- We must apply our philosophy consistently.
- Our estimates of the appraisal value for securities must be conservative.
- Our actions must be contrarian: in times of panic we should be buying; in times of euphoria we should be selling.