Your investment philosophy is like the spine of a book. It touches every page and gives it structure.
In investment terms, being benchmark aware means that when constructing an equity portfolio reference is made to the composition of the Benchmark itself and the weighting of individual stocks within the benchmark. This means that they will hold either an under or overweight position in a stock relative to its benchmark weight.
At Investment Partners, we favour a benchmark unaware portfolio construction approach, which allows our investment managers to use their research expertise to actively identify the best, risk-adjusted opportunities, regardless of the composition of any theoretical or actual index.
This is a deep dive into the companies we consider investing in, with respect to leadership, management, competition, industry, clients. We believe that the deeper you understand the business, the better for long term investing and is an essential partner to our technical analysis of numbers and charts to round out our assessment with critical intelligence.
These are companies that are managed by people who have proven success and consistent earnings per share growth, within a market where they have displayed superiority to fend off competition.
Tactical Asset Allocation
This is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors.
High conviction describes a portfolio whose manger weights a reasonable percentage in companies that they truly and deeply believe in, typically holding somewhere between 15 to 25 stocks versus 200 to 500.
Long Term Focus
We strongly believe investing is a long term game. When investing in a company, we are looking at a 7-year timeframe, valuing it at over a 3-year timeframe, and not being concerned with its 1-year return. This philosophy results in a low turnover of shares and a more robust performance.