Investment Philosophy

We believe that the most professional way to manage money is to adopt a highly disciplined approach based on macro-economic views first before selecting sectors and then screening for individual stocks. This approach is commonly called TOP DOWN as opposed to a BOTTOM UP. This achieves the twin objectives of minimising risk and preserving capital with the ability to maximise returns.

It is our strong belief that new trends, (albeit initially sometimes almost imperceptible), or events taking place on the other side of the world (often unnoticed by UK company managements) frequently upset the best conceived plans of Bottom Up fund managers, thus causing their performance to go awry. The effects of the collapse of communism in China and new technological inventions from California are two obvious examples.

A good grasp of the big picture view is deemed to be the key to successful investment returns.  It produces enhanced investment returns because it discourages the manager from investing in the riskier areas of the stock market thus enabling the portfolio to be concentrated in the sectors likely to produce greater rewards.  

Current investment themes include: exposure to faster growth economies than the UK (e.g. the Far East); interest rate sensitive sectors, demographics (old age); energy shortage; Government policy increased (e.g. transport); regulation; out-sourcing, short drug pipelines in large pharmaceutical companies; high-value added; deflation; disintermediation; value stocks; and special situations.

Key to success: All paperwork is outsourced to enable management to concentrate on investment without distraction from administration.