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Investment Philosophy

The future course of investment markets is uncertain. We believe that all investors make mistakes when making decisions under conditions of uncertainty. This leads them to incorrectly forecast share market  returns and risk.

These mistakes are exploitable by us.

A rigorous, structured and disciplined investment process will maximize the potential to exploit profit-making opportunities presented through the mistakes of others. We use our own Intrinsic investment decision making process (the Intrinsic Process) to analyse investment markets and securities to identify and capture profit making opportunities.

Our aim is to maximize portfolio returns over the long term, subject to client risk preferences. Our desire to do so means that we hold no preference for one type of security over another (e.g. Industrial companies over resources companies, or a preference for one investment style over another. For example, Growth or Value or Growth at the Right Price).

It is because we are not biased toward a particular investment style that we call our “flagship” portfolio, Style Neutral. However, it is because we seek to perform well in all market environments that we are willing to skew the portfolio toward the investment style (i.e. Growth or Value) that we think is going to do best in the immediate future. For clients preferring a bias to a particular investment style, we offer specific Growth and Value portfolios. These portfolios are managed in the same way as the Style Neutral portfolio, with the exception that the securities selected exclude companies with certain characteristics. For example, the Value portfolio excludes Growth companies.

Moreover, by not being biased toward a particular investment style or type of security, we are able to build portfolios tailored to our client’s preferences rather than they accepting our preferences.

For example:

  • If the client needs income, then we will devise a portfolio of higher yielding securities;
  • If the client wishes to exclude certain types of companies from an individual portfolio (such as Uranium miners, brewers, or media companies), then we can do that too.


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