“I'm impressed that you rode the bull market with emerging market like returns in 2005 - 2007 but that your clients didn't lose their shirts during the credit crunch.”
Risk Management
Our approach to risk management is designed to reduce losses whilst simultaneously increasing the likelihood of superior returns. We combine: a proven investment philosophy that focuses on reducing risk; an experienced and international team with diverse perspectives; a detailed process that means that out of the thousands of stocks we might consider, only a handful are eventually selected for our portfolio; and, a diversification strategy that distributes the purchase of assets across industry, geography and currency.
In addition, further risk reduction is achieved by our focus on investing only in companies that are:
- Well established
- Trading substantially below their real value
- Rich in tangible assets such as cash, land and property
- Minimum market value of £100M
- Have a good dividend record
- Have substantial trading volume
The Fund’s portfolio generally consists of 25–35 stocks. This is sufficient to allow for risk reduction via diversification, without over-diluting our ability to select and invest in stocks that go on to outperform.