Investment Philosophy
The high correlation between different financial markets and instruments, to significant extend caused by algorithmic approach to asset allocation, makes investment process significantly more challenging. When making investment decisions, we combine modern portfolio management techniques with insights from behavioural finance and psychology.
Our investment philosophy is based on a number of postulates:
- Long-term thinking and investing brings best returns
- Risk and returns are related
- There are no cheap or expensive stocks, but the market often misprices risks and/or growth potential
- A disciplined approach underpins successful investing
- The market is a constantly changing dynamic system
Our investment strategy is more suitable for family offices, focused on preserving and increasing family wealth in a long run. Though we may explore a short-term market volatility and dislocations, we concentrate on achieving long-term superior returns through global macro driven industry and country allocations and bottom-up fundamental analysis.
We attempt to identify the risk/return mispricing in various types of investments and then implement an investment approach that shifts the asset allocation as risk perceptions change. The multi-strategy approach allows us to be flexible enough to efficiently address different market conditions and to provide a more consistent rate of return and lower volatility that a typical buy-and-hold investment philosophy.
The sophisticated approach to risk management allows reducing volatility of a portfolio and managing systematic risks. The management of idiosyncratic risk is done through reasonable level of diversification across industries and countries.
We invest in private equity in EMEA region on a very selective basis focusing on turnaround situations.