The market is inefficient, and often has significant levels of excess volatility. This inefficiency provides enough opportunities for skilled investors to generate alpha. We believe that the highly competitive nature of markets makes it difficult for investors to generate alpha consistently. Therefore, we actively manage our investment portfolios with a benchmark-cognizant mindset.
Emotional errors from traditional investors create opportunities for us to generate excess investment returns. A machine is much better at taking certain decisions. We believe that combining investment insight with the discipline and transparency of a quantitative framework enhances investment returns. This approach recognizes real-world complexity, and we apply it across all our investment strategies.
For our Equity strategies, we believe that buying companies whose earnings are growing much faster than average leads to the outperformance of the market in the long run. Investors often under-estimate the length of a company’s high growth period. Therefore, we concentrate on finding companies that have a clear prospect of delivering superior earnings growth relative to their peers.
The best way to build wealth is through the compounding of consistent investment returns. With so many moving parts, investment management is enormously complex, and a robust risk management function is critical to delivering the best outcomes. Risk management is embedded within our investment processes to create portfolios that have low to moderate active risk.