Core Characteristics
 | A high conviction long-only all-caps portfolio of Asia ex-Japan listed equities |
 | Fundamental, bottom-up stock selection, style-agnosticActively managed, unconstrained and benchmark unaware |
 | Strict ESG guidelines |
 | Founding members have partnered together in Asia for over 14 years |
 | Strong track record investing in Asian equities |
Top 7 Investment Disciplines
Be Rational
Work hard to avoid a checklist of biases gives a large advantage over untrained persons.
Be Diligent
Knowledge compounds. Over time hard work turns into a widening advantage.
Do What You Know
Key to increasing the probability of good decisions.
Be Patient
Let compounding do the work and avoid interrupting it unnecessarily.
Be Conservative
For a compounding series, anything times zero is zero. Avoiding large mistakes is the key to compounding.
Be Contrarian
A necessary although not sufficient condition for outperformance.
Use Common Sense
When it’s trite, it’s right.
Our deep-dive investment process is designed to exploit different inefficiencies in the market, while minimising the supply of our own.
We adopt a deep-dive multidisciplinary approach to investing that exploit inefficiencies caused by rigid industry and country categorizaton, market cap categorization and investment time-horizon constraints. For example, it is increasingly harder to decide whether an automotive company should be categorized in the IT sector or industrial sector. Our multidisciplinary approach aim to exploit inefficiencies at the boundaries of analyst and portfolio manager coverage.
We promote rational decision making through open idea discussion and seamless information sharing. We embrace a collaborative decision making process – we believe good communication is key to good idea formulation, and putting everything under the sun with a team of open-minded individuals is one of the best ways to mitigate psychological biases.
A high conviction stock selection passes the following tests:
Opportunity cost
A new idea entering the portfolio has to be better than the least attractive idea in the portfolio.
Hurdle rate
If an idea does not meet our minimum hurdle, we give it a pass. We dislike holding cash, but we dislike dumb ideas even more.
Certainty
We prefer high probability events. We believe making a string of highly certain decisions rather than individual high upside-potential decisions is the key to maximise the long run rate of compounding.
Margin of safety
The company must be trading at a large enough discount to intrinsic value to compensate for the vicissitudes of life and our errors in calculation.
Continuity of earnings
We prefer continuity in earnings over near-term visibility in earnings.