Investment Principles

Financing for Growth
  • Clear and well considered business plan would lead to higher probability of success.
Stability, Predictability and Tangibility of Cash Flows
  • Contracted cash flows, tangible assets and managers long term track records would eliminate reliance on market environment.
Reasonable Exit Scenario
  • Multiple exit scenarios eliminates loss of principal value.
  • In case of investing in liquid assets, demand supply balances and liquidity needs to be considered.
Transparency of Investments
  • Clear source of return would allow us to closely monitor the quality of investments.
Mispricing Caused by Demand / Supply Imbalances
Opportunities are defined when quality assets are traded at a discount.
  • Forced to sell driven by regulations (Longer term trend caused by Basel III, Solvency II etc.)
  • Imbalances driven by policies (Short to mid-term trend caused by central banks announcements etc.)
  • Imbalances driven by events such as Lehman crisis (Sell offs regardless of quality of assets)

Investment Philosophy

Do not predict market trend, but try to understand …
  • Big structural reforms
  • Manager views
Emphasize capital preservation and total return by…
  • Understanding capital flows and demand/supply imbalances
  • Strategy selection and diversification
  • Being opportunistic
  • Constructing clear exit scenario
  • Avoiding "loss" versus volatility (σ) or tracking error (TE)
Emphasize knowledge and experience of sophisticated professionals
  • Find the niche
  • Promote experienced talents

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