Investment Approach

Beliefs and strategy

1. There are different drivers of short and long term returns:

a. Company and industry dynamics drive long term returns
b. Volatility, liquidity and inter-market relationships drive short term performance

2. Investment markets demonstrate numerous generic behaviours

a. Across sectors, geographies and time frames
b. Are persistent in nature
c. Therefore are an investment opportunity

3. An integrated approach can deliver superior investment outcomes

a. Tactical strategy to harvest generic market behaviours that are persistent;
b. Strategic equity portfolio to harness long term equity returns

4. Market inefficiencies are best exploited by a scientific, dispassionate process

5. An underlying long only equity portfolio will deliver strong returns over the long term and provide diversification benefits to the tactical strategy

Key elements:

1. Capitalise on daily related market relationships, interconnected with a strategically constructed high quality Australasian equities portfolio.

2. Daily trading using mathematically established principles of behavioural finance and rigorous logic.

3. Capitalise on daily share market volatility through capturing the market volatility aspect of stock movements caused by inefficiencies.

4. The quantitative factors we use remain persistent over time due to behavioural biases.

5. Use ‘smart’ intra-day leverage with zero overnight leverage

6. No engagement in short selling of equities