What We Do

As a specialized advisor, portfolio management is a consistent and reliable execution to turn a piece of investment judgment into performance results infallibly, which builds the foundation of trust.

We take calculated uncertainties. It is higher than the market. 

Portfolio Overview

The primary character of the portfolio is described as follows. 

• Public Equity & Long Only
• No Leverage, No Derivatives, and No Active Currency Allocation
• Broad Market Cap Range: From Mega Cap to Small Cap
• Global & Multi-Industry
• Focus on Individual Stocks
• Fundamental, Long Term, and Concentrated Approach
• Growth of Value Orientation

More About Portfolio

For more about portfolio management, please find more information from clicking the links below. 

 

Portfolio Management and Risk Management

As the security selection is made from the world equity market, the market index, such as the world equity market indices published by MSCI, FT, or S&P, would be a useful reference. However, we do not intentionally control or manage the portfolio against these indices, as such an approach bends the long-term objectives and forces to get market-price oriented. 

Our goal is to keep a thoughtful distance from the market price dynamics and to remain independent from market indices but opportunistically take modest advantage of market dynamics, as we do not think we are skillful in timing the market and trading. Taking actions against the short term market price moves needs to be restrained carefully, as its extension inevitably leads to the infection of price forecasting syndrome. 

We look at the aggregate risk figures, such as a weighted average of financial ratios, but they have many limitations in practice. The general character of a portfolio can be compared in numbers, but when managing a portfolio and making rebalance, individual security decisions come first. As a result, the primary objective of portfolio management control using the aggregate risk figures gets mixed, and the investment actions get unclear. 

Thus, we make sure that the decisions are made by individual security, and the portfolio risk management-led transactions are minimal and supplementary. 

Instead, the real portfolio risk management is intensive, always-on, and careful monitoring of the companies in the portfolio. (Again the term risk is used to control price behavior and there is a deviation from an exact fundamental focused value approach) The risk management is to avoid any unforeseen and dynamic uncertainties of individual security level in advance. 

As uncertainty is not quantifiable in advance, it is also essential to understand how correlated each dot of uncertainty is and what shape it has from our perspectives, when aggregated. 

They get aggregated, becoming a portfolio risk (I would call it uncertainty) management process, and uncertainty is not quantifiable in advance. It is also essential to understand how correlated each dot of uncertainty is and what shape it has from our perspectives.