Investment Principles

Portfolio investment is conducted under the following principles:

Overriding long term portfolio focus

  • Portfolio comprised of both Long term and Short term positions
  • Long term view however will override short term biases

Risk management (utilised in four primary ways)

  • Position sizing (controls in place around maximum weightings)
  • Flexibility to utilise direct and indirect hedging mechanisms
  • Flexibility to utilise high levels of cash
  • Flexibility to use stop losses
  • Note: normal market volatility will still occur. Exposure to the share market carries underlying risk which cannot be mitigated.

Focus on quality end of the investment spectrum

  • Stability and quality of earnings
  • Stability and re-occurring nature of dividends
  • Focus on consensus data (no house stocks, no conflict of interests)