Investment Philosophy

A carefully engineered investment philosophy driven by data analysis

Methodical employs a systematic investment process. It is our belief that, by adhering to a well-designed process which favours traditional investment metrics, our funds will generate alpha through the cycle and over the long run.

We embrace technology to achieve best implementation. Our in-house algorithms are able to analyse vast data sets and identify specific opportunities that correspond to Methodical’s rigorous investment criteria.

We believe that to beat the benchmark, you have to go off-benchmark. Whereas other funds try to tweak the index by weighting certain factors, our philosophy is to capture alpha by investing in stocks that outperform the benchmark. For this reason, we do not focus on style, sectors or geographies in our process.

Our commitment to the Methodical process means we circumvent some of the largest constraints facing traditional investment approaches:

  • Bias – Human bias is innate and colours our judgement. Methodical’s propriety algorithms evaluate each investment opportunity in the same way, constantly, across different markets and time periods. They are not distracted by good stories, charismatic CEOs or market noise.
  • Error – There is simply too much data and too much noise in the markets today for old-school analysts. Overload and fatigue leads to mistakes and inconsistent analysis. By contrast, Methodical’s algorithms function 24/7 and never draw impulsive or irrational conclusions.
  • Scope – Technology vastly extends Methodical’s investment reach, allowing us to manage globe equity positions from Cape Town as easily as we manage local ones.

Solving these constraints means we invest purely on factual data, not market rumour, hunches or speculation.

We challenge
each other and
our systems
to continue evolving

BENEFITS OF A SYSTEMATIC INVESTMENT PHILOSOPHY

Rational decision making

Consistent application of methodology across markets

Easily scaled

No reliant on star portfolio managers of teams

Able to invest in performing stocks regardless of style

24/7 Global analytic capacity