This is how we select shares
We believe in active management - and we believe that a disciplined and structured investment process results in a higher return over time. For the short term, shares may trade at a price that deviates widely from their fair value. Yet we believe that markets will in the long term reward companies which generate higher cash flows. The financial markets will always be affected by investors' short-term reaction at any given time. But it means that an investor who invests for the long term can find good opportunities for picking up cheap shares with potential.
We prefer shares with attractive value and positive momentum as we believe that this combination will add to the return. Attractive value appears when shares are traded below the value that we believe the share is worth. Positive momentum arises when expectations of the company's earnings are upgraded regularly and the company reports sustained high and steadily rising earnings.
Our investment process is a focused bottom-up process which rests on quantitative screening of shares and subsequent qualitative assessment of each of the shares selected. Portfolios are compiled with focus on diversification and optimization of the risk/return ratio of individual portfolios.