Our Investment Process

Company Visits

It is essential for our analysts and portfolio managers to meet with senior management of the company we are considering for investment. Onsite visits are crucial to get a more accurate feel of the company’s day-to-day operations, workplace conditions, and allows us to inspect factories, warehouses, and where applicable, R&D facilities. We will also cross-check by meeting with competitors, industry experts, suppliers involved in the value chain, and end-customers. This thorough due diligence will help us identify the best opportunities and properly assess the disparity between the company’s current stock price and its intrinsic value.

Position Management

We conservatively size positions – initial allocation between 1% and 2% with liquidity being the key determinant. We build up a position as confidence grows in the company management’s ability to deliver on promises. The analyst who recommends the stock is responsible for continued coverage – must meet with the company and update the write-up at least quarterly. A holding can grow up to 10% of the portfolio. As we are high-conviction stock pickers and not day-traders, our target turnover rate typically ranges between 40% to 60% annually.

Risk Management

Our team effectively manages the risks at the stock and portfolio levels. We have dedicated personnel who continually assess downside risk for all portfolio positions. Our use of leverage is limited and based on investment guidelines and diversification rules that are monitored by our internal systems. We pride in having “local” knowledge of our portfolio companies – and place prospective investment targets in the context of its competitors, suppliers, customers and government policy. Our portfolios are well-diversified – invest in companies across multiple sectors and market capitalizations – and we will accept moderate volatility for high, long-term alphatment.