The investment process is based on fundamental bottom-up stock selection.
We run proprietary models for some 300+ companies to enhance understanding of companies, how they operate, industry dynamics and considering them as a starting point for fair value estimates. Valuation targets are embedded in all company models. The methodology is often based on normalised operating profit and/or a sum-of-the-parts analysis. We give each stock a multiple that`s dependent upon short- and long-term attractiveness of the industry and the company' s fundamental strength. We adjust for liabilities and assets not impacting the value of the company's operations.
We closely monitor industry and company news looking for structural strengths and weaknesses in the industry, trend shifts as well as possible structural changes to the company or industry that could impact long-term valuations. We believe that there are positive and negative aspects to impact stock momentum over the next 6 - 12 months.
100% equities only. Maximum of 10% placed in cash. Although our managers have the possibility to use derivatives they do not currently do so actively. The fund is authorised to make use of derivative financial instruments and the techniques referred to hereafter.
The derivative financial instruments may include options, futures and forward contracts on financial instruments and options on such contracts as well as swap contracts by private agreement on any type of financial instruments, to name but a few.
The derivative financial instruments must be dealt on an organised market or contracted by private agreement with first-class professionals specialised in this type of transaction.
Managerial skills, strong models and an active market approach gives the team an edge. With proprietary developed bottom-up company models securing a strong understanding of stock drivers and valuation potential.
The output of company models is organised in proprietary screening to ensure that the highest number of investment opportunities are identified.
In addition, an active approach and a disciplined portfolio construction process are part of what are considered to be our key attributes. Ultimately, it is the specialised skills, knowledge and experience of our individuals that will distinguish us from our peers. Additionally, we feel that our strong relationship with the DNB Group, wich affords access to a significant network of industrial expertise, will continue to provide us with a competitive advantage. In addition, the vehicle offers daily liquidity, has high transparency and is SRI-compliant.
