Our Investment Philosophy

We believe that the traditional approach to investing, no matter how well designed and well intentioned, includes unavoidable bias in the stock selection process because of the influence of human emotions on the decision-making process.

We therefore set out to develop an exceptionally rational and objective automated process that would remove these biases through the application of statistical systems.

WE BELIEVE THAT OUR
METHODOLOGY HAS
SIGNIFICANT BENEFITS
FOR INVESTORS SEEKING
CONSISTENT OUTPERFORMANCE

THESE INCLUDE:

Our systematic approach which removes inherent bias and unavoidable emotional attachments or aversions to stocks from the investment process.

Our process is location independent – analysis can be performed from anywhere in the world on stocks in any market.

The system acts on known information in the market, thus forecasting of uncertain future events plays no part in our investment process.

Because we take a systematic approach, our correlation to traditional fund managers is low, which means that our funds provide excellent diversification in a larger portfolio of funds.

Our Investing Process

Propel

The Propel module is the engine of the system. It drives our investment process.

Propel takes the top 60 most liquid stocks on the JSE, for our local funds, and the largest 1 500 developed market stocks globally, for our international funds, out of the 68 000 stocks listed internationally, and meticulously analyses these companies.

These stocks are then ranked accordingly to what we believe are the best indicators of potential upside, to create a list of the stocks that are most likely to outperform their benchmarks over time.

Navigate

Navigate is the risk management system that determines the allocation of the investment in the companies recommended by the Propel module. Navigate uses a three-tier system to determine the percentage of the portfolio to invest in each stock, based on the ranking derived from Propel as well as on the individual stock’s current degree of over or under-valuation.

The system operates on a buying discipline so that stocks fall out of the portfolio when they no longer make the top ranking, removing the decision on when to sell a particular stock.

This approach results in a completely objective stock selection and a ruthless culling of stocks that no longer show strong relative upside potential.