Fundamentally Focused

Portfolio Construction

Our objective is to construct a diversified portfolio of quality businesses that possess asymmetric risk/reward profiles. Our security selection process is heavily reliant on our bottom-up research process, however we are acutely focused on the interplay between security selection and the complexion of the portfolio.

Portfolio composition driven by bottom-up research

•   Fundamental company analysis and valuation
•   Discount to our estimation of intrinsic value

Individual position sizes

•   Determined by comparing risk/reward profiles (quality of the business, expected return, downside risk)
•   Portfolio will typically hold around 40 stocks
•   Maximum position size is 7.5%

Risk control

•   Fundamental company analysis is our key risk control
•   Long-only equities
•   Maximum weighting in any sector is 35%
•   Seek to remain fully invested. Cash is typically less than 5% of portfolio
•   Currency risk managed through stock selection & portfolio allocation