Our philosophy is to invest in liquid financial instruments, stocks, bonds and currencies. We avoid leverage and structured products. We are very attentive to currency exposure which we manage independently of the holdings in the portfolio. We do this by hedging or, occasionally, by taking outright positions.
We manage bond exposure pro-actively, with the objective of maximizing returns by investing up and down the yield curve depending on our view of markets. Where we believe there is value we will make use of the various instruments available from floating rate notes to short dated bonds, inflation-linked, zero coupons and long bonds. We will also invest in up and coming markets usually where we see a strong central bank and sustainable debt levels – recent examples are India, Russia and Ireland.
When investing in equities we choose companies that we believe are likely to outperform the market and are bought and held until we believe otherwise. Futures may be held in times of high volatility as they have proven to be liquid and tradable in size when markets in stocks become less liquid.
For us, investment is a matter of fundamentals and long-term success. While constantly seeking to improve risk-adjusted return in our portfolios, our approach to investment management requires patience to allow the strategy embraced to deliver its full potential.
The combined investment experience of our team allows us to match our clients’ objectives whilst minimizing risk and hopefully maximizing rewards.
Our process starts with gathering the different specificities of our clients to ensure that our portfolios are efficient and suit their individual investment objectives. We will then analyse market conditions and combine both a top-down and bottom-up approaches. This means selecting in primis the markets and countries that offer the best investment prospects and choosing the securities that offer the most attractive risk adjusted returns. Our philosophy is to limit the number of investments where we have strong convictions over the long term.