We focus on finding "undiscovered, mispriced value" - the winners of the future.
Our global team brings together the art of investing and the fundamental science to enable our clients to achieve their financial objectives.

Main Investment Themes

Longevity/Biotechnology

Cloud Analytics

Disruptive Intelligent Automation
Based on AI, Robotics, and Cloud Digital Platforms

Data-Driven E-Commerce

Artificial Intelligence

Alternative Energy/Greentech/Climate Change

How We Invest

The 3 main tactics of the fund are:

Finding undiscovered value

Investing in compounders

Buying unpopular assets

The importance of market inefficiency

We believe inefficiencies in disruptive technology investments arise because most traditional investment managers are more focused on short-term earnings and performance. There are many companies that are often poorly analyzed and securities that are commonly mispriced. We feel that skill, hard work, and experience can lead to a "competitive knowledge advantage," and thus to potentially superior investment results. We search for undiscovered values in less efficient segments in which dispassionate application of skill, effort, and experience should pay off for our clients.

We believe innovation as well is the key to long term growth. The opportunities that innovation creates are also often missed or misunderstood by traditional investment managers who are more focused on sectors, indexes, and short-term performance measurements.

We seek to earn attractive returns in equity positions by:

Leveraging our team’s global experience

Utilizing a bottom-up approach

Applying the in-depth industry knowledge of our experts and fundamentals scientists, while taking into consideration macroeconomic and market conditions

Our investment objective

Our goal is to double the investment over the 5 to 10-year business cycle with a moderate risk profile. Our fund models are based on 36-month target multiple calculations and target price estimates. Most investment ideas in the fund have 100% upside potential over a 36-month holding period.

Our approach

The key elements of our investment approach are:

Active bottom-up portfolio management without market cap, sector, or country bias

Quantitative and qualitative selection of 15-20 investment ideas, which have maximum absolute return potential

An optimum 20-stock portfolio size, allowing monitoring of the key drivers of long-term competitive advantages and profitability, searching for negative trends that impact business

No geographic or sector restrictions

Benchmarking

We use the MSCI World (USD) index (Bloomberg MXWO) benchmark for performance comparison only. Otherwise, our investment strategy is benchmark agnostic, and we are ready to take a “contrarian” view in accordance with our strategy. Examples of our fund portfolio exposures are:

In 2020, 30% biotech and 30% information technology (IT)

In 2019, 30%+ gold mining stocks in discretionally managed portfolios

Portfolio construction

We construct the fund’s portfolio as follows:

We focus on generating alpha in the portfolio

Non-benchmark stocks can make up ~50% of the portfolio

Concentrated portfolio of 15-20 high conviction global stocks

Centering of the portfolio on the ten top ideas - core holdings, constituting 50% of the portfolio, with allocation between 5%-10%

Upside/downside ratio designed to deliver the right reward, e.g., paying $0.50 for $1 value

However, we will likely exit a position if 100% price appreciation is recorded AND a new position can be entered with the same risk/reward trade-off

Risk Management

We place the highest priority on preventing losses.

We do not hide behind fancy quantitative variables based on back tests and history. We search for negative trends based on our fundamental analysis and industry expertise. We aim to exit a position before a negative trend in a company becomes known to market participants in general.

We exercise price discipline. Specifically, we manage the downside by not paying high multiples for growth stocks. In general, we do not pay more than 1.5 PEG for growth stocks. We buy ultra-growth stocks at the time of negative earnings surprises or market corrections.

Our risk management procedures allow us to minimize the fund’s drawdown during difficult times.

We manage fund liquidity

As a rule, for a USD 100 million portfolio, 50% of the book can be liquidated in a single day, using the lowest of either the past 10-day average or 100-day moving average liquidity; 80% of the book can be liquidated within one week.

We calculate the probability of events and prepare for them, rather than reacting to events after they have happened.

Investments Principles

We focus on the absolute return potential and risk management of the portfolio, instead of simply following academic guidelines.

We win thanks to the consistency of our approach, protection of capital, and superior performance in bad times.

Sustainability and creation of long-term value are priorities for us. We focus on companies, which have sustainable competitive advantage, compound their earnings over the economic cycle, and therefore increase the shareholders’ value.

Our approach to responsible investment is pragmatic. We do not use a tick-box approach based on companies’ sustainability reports as it results in mediocre performance in the long term. We exclude from our list companies that damage the environment or society, or that abuse corporate governance standards.

We invest in the companies where the management is fully transparent. We avoid companies we do not understand.

Historically, we have not invested in state-owned or politically exposed companies, nor companies with poor corporate governance as management teams are frequently inefficient, business decisions are often made based on political reasons, and in many cases management teams engage in unethical business relationships.