Investment Philosophy
Our responsibility to manage client investments with care and diligence is driven by the intention of outperforming not only our client’s investment objectives but also their expectations. Only by being truly independent are we able to find the highest quality investment opportunities. We know that building wealth is a science but experiencing wealth is an emotion.
Investment Approach
Our approach is one of outsourcing security selection to best-in-class boutique investment managers that we believe have an edge over other market participants. Understanding that this edge lies not only with outperformance but also with risk management is what we believe sets them apart. It consists of 2 factors:
We believe active investment managers are able to generate alpha for clients. We believe that outsourcing security selection to best-in-class boutique investment managers will lead to outperformance on an after-cost basis. Proprietary Quantitative models are used to optimise the diversification benefits between different managers in one portfolio.
After we have selected the managers, allocations are based on a well researched asset allocation process. We analyse cyclical trends, risk premiums, growth prospects & valuations of different markets. We believe this process enhances return outcomes for our clients & manages investment risks on an active basis.
Investments Beliefs
Investment Beliefs form the foundation of making investment decisions. Knowing what we believe in provides the framework to identify risks & highlight opportunities within the relevant investment markets.
Active management forms the core of our investment approach. Passive strategies are seen as a satellite strategy complementary to active management. Having flexibility within an investment mandate allows managers to act on a "best ideas" basis without being constrained to a specific benchmark allocation. Furthermore, we believe that boutique managers are best capable to execute on opportunities due to factors such as a flat corporate investment structure, unconstrained position sizing etc.
Our aim is to implement a specialised, actively managed multi-manager fund at the cost of the average single-manager fund. We are able to utilise the scale of the business along with key 3rd party relationships to negotiate fees. We do not believe that implementing passive strategies with the primary goal of reducing fees for clients serves the best interests of our clients, who aim for the best investment outcome after fees.
We believe the optimal portfolio is created when traditional investments (long only) are blended with alternative investments (hedge funds). When low-beta alternative strategies are combined with higher-beta traditional exposure true diversification benefits emerge. The diversification between strategies on the alternative side in conjunction with the diversification between asset classes on the traditional side further enhances the TRUE diversification benefits many investors aim to achieve.
The knowledge & management of investor behavioural biases play an integral part in the way we construct our portfolios. The portfolio construction process aims to increase the predictability of returns. The intention is to reduce the risk of unpredictable investor behavior.
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