Discretionary Investment Process
- Idea Generation
We begin by identifying investment opportunities through qualitative and quantitative methods, leveraging market trends, economic data, and proprietary research.
- Actions:
- Monitor macroeconomic trends and sector developments.
- Develop investment themes based on technology, regulation, and market changes.
- Outcome: A pipeline of promising investment ideas aligned with strategic goals.
- Translating Idea Generation into an Asset Allocation Strategy
We then translate these ideas into an asset allocation strategy, ensuring they align with the portfolio’s risk-return profile.
- Actions:
- Assess the fit of ideas within asset classes (equities, bonds, alternatives etc.).
- Ensure the ideas align with market conditions and portfolio objectives.
- Ensure proper diversification to minimize concentration risk.
- Outcome: A clear asset allocation strategy that integrates identified opportunities.
- Fundamental Analysis
Next, we evaluate the financial health, growth potential, and market position of each investment idea.
- Actions:
- Analyze financial statements and key metrics (e.g., profitability, valuation).
- Assess management quality and competitive advantages.
- Evaluate long-term growth potential based on industry trends.
- Outcome: A detailed understanding of each investment's value and potential.
- Technical Analysis
To time the buying and selling of investments, we employ technical analysis to identify market trends, entry and exit points, and price patterns.
- Actions:
- Analyze price movements, volume trends, and technical indicators (e.g., moving averages, RSI).
- Identify key support and resistance levels to optimize trade timing.
- Use chart patterns (e.g., head and shoulders, double tops) to assess potential price movements.
- Outcome: Improved timing of entry and exit points, optimizing returns and minimizing downside risk.
- Ranking and Prioritization
We rank and prioritize investment opportunities based on a systematic evaluation of key factors.
- Actions:
- Develop a scorecard based on growth potential, valuation, and risk.
- Rank opportunities from most attractive to least attractive.
- Outcome: A prioritized list of investments that align with the portfolio's objectives.
- Risk Analysis
We assess the risks associated with each investment to ensure the portfolio remains aligned with the client’s risk tolerance.
- Actions:
- Evaluate market, credit, liquidity, and operational risks.
- Perform stress testing and scenario analysis.
- Assess correlations between investments for effective diversification.
- Outcome: A clear understanding of risks, ensuring alignment with risk tolerance.
- Portfolio Construction
We construct a diversified portfolio by selecting the highest-ranked investments while managing risk.
- Actions:
- Allocate capital across selected investments based on risk-return goals.
- Determine appropriate position sizes and maintain diversification.
- Outcome: A well-constructed, diversified portfolio that meets client objectives.
- Monitoring and Reassessment
We continuously monitor the portfolio, making adjustments as necessary based on performance and market conditions.
- Actions:
- Track portfolio performance and market trends.
- Adjust the portfolio as needed to reflect changes in client goals or market conditions.
- Bimonthly investment committee meetings to discuss developments within portfolio holdings.
- Outcome: A dynamic, optimally adjusted portfolio aligned with client goals.
