We combine "top-down" macroeconomic research with rigorous "bottom-up" fundamental analysis to inform our buy and sell decisions, as well as to determine our level of conviction.
Using customised tools and our extensive historic performance databases, we analyse macroeconomic data to identify prevailing and future "themes" and how they are likely to play out in world markets. This "big picture" perspective informs our medium- to long-term asset allocation decisions, and assists us in identifying attractive investment opportunities and potential risks.
Rigorous research and analysis yield fundamental valuations to identify whether an asset, such as a particular share, is trading at an attractive price or if it has become too expensive.
An integrated view
We combine the results of these approaches and, if an attractively priced investment has a correspondingly strong theme, it falls in the "buy lots" quadrant in the diagram above.
Because markets are cyclical and dynamic by nature, we monitor all our positions carefully. As the price of an investment of which we "bought lots" becomes expensive, we start to reduce exposure and take profits. Similarly, if we see a theme deteriorate, we will "Sell All", to lock in profit and avoid risk. To buy an asset that is not supported by a theme, the fundamentals have to be compelling and the investment must offer exceptional value. Such a security will be in the "Buy Some" quadrant.