An investment philosophy is a set of core beliefs about how the markets work. Our investment philosophy is based on three key principles that are applied to both the Blue Quadrant Capital Growth Fund and the Blue Quadrant Worldwide Flexible Prescient Fund. By constantly considering our investment philosophy, we ensure that all our investment decisions reflect these core beliefs. Our investment process and risk management build on this core investment philosophy.
ALIGNMENT BETWEEN MACROECONOMIC, INDUSTRY AND COMPANY FACTORS IS CRUCIAL
We believe company valuations must be viewed in the context of the industry and macroeconomic landscape. By understanding the broader conditions, we steer clear from the value trap and always seek to understand the catalyst for a potential price re-rating.
WE DO NOT PREDICT THE FUTURE, BUT RATHER GAUGE THE LIKELIHOOD OF A PARTICULAR SCENARIO
Our macroeconomic and thematic views are generated on the balance of probabilities. It is impossible to forecast every indicator but taken together, we assess the most likely market outcome.
MARGIN OF SAFETY IS CRITICAL
We enter positions at a significant discount to intrinsic value, and in so doing create a margin of safety for our investors. We are always mindful of the relationship between risk of loss and potential upside and look for trades that exhibit high levels of asymmetry.