The craft of investing

Equity markets began the year with considerable appreciations. Slightly better-than-expected and progressively improving inflation data reduced the likelihood that the central banks would apply more restrictive monetary policies.

The latest IMF forecasts confirm a global slowdown, but not a recession, reiterating the difficulty of anticipating the macroeconomic scenario.

We remain confident that the key driver of share prices over the long term is profit growth.

2022 has tested our clients’ patience and renewed their confidence, which we sincerely appreciate. We strive tirelessly not to disappoint and we remain confident, as ever, that “the world will not end”.

This strict investment criteria explains the low turnover of our portfolio.

Hope that the pace of interest rate hikes will ease soon has reinvigorated public debt and equity markets.

We have capitalised on the excessive compression of multiples among top-quality companies to add names at valuations far below their historical average.

The disconnect between fundamentals and valuations creates a unique opportunity to build a portfolio of top-quality securities.

The fund considers environmental, social, and sustainability factors in the investment process.

Based on current prices and our profit growth estimate for the portfolio as a whole, we expect the fund to double its net-worth in five years.

Elevated volatility and uncertainty make macroeconomic forecasting difficult, once again lending credence to our investment style, which focuses on asset selection.

For this reason we try to isolate ourselves from such distortions that predict high returns in future, but which can cloud the investor’s vision.