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Investment approach

We are a fundamental, value investor and our principal objective is safeguarding our investors’ capital.

Investment universe

We consider companies listed in developed markets with a market capitalisation over US$1.5 billion

Stock selection

Our investment strategy is to curate a concentrated selection of 10-20 high quality global companies purchased at a discount to their conservatively estimated intrinsic value.  We seek businesses with these key traits: A sustainable competitive advantage Honest and able management Acquired at a fair price We sell a stock for one of only three reasons: … Continued

Portfolio exclusions

An early screen in our investment process excludes companies from further consideration which do not meet our ESG standards. The screen removes industry sectors such as production and distribution of gambling products, weapons manufacturing and fossil fuel mining. We do not short sell stocks, invest in derivatives or bonds and do not leverage our investments.

Focus on after tax returns

As our investment strategy is designed to optimise returns to investors, we are mindful of the tax implications of our trading strategy. We prefer to hold investments as long as possible, avoiding taxable realised gains. We only invest when it makes sense to do so and If we can’t find a suitable investment we will hold … Continued

Greater opportunity

The Australian equities market is very small, accounting for less than 2.5% of developed global equities markets, and has only a handful of truly exceptional businesses. Accessing a selection of high quality multinational companies in leading edge industries is only possible through international markets.

Diversification

Adding international equities to an investment portfolio of Australian equities, fixed interest and property has the potential to increase return and lower risk. Our strategy provides exposure to companies in a variety of sectors and industries that are not available in Australia.

Low correlation

If all your assets are highly correlated, when one goes down, they all go down. Historically the Swell Global Portfolio has had a correlation less than 1 to the ASX All Ordinaries Index. This means you may increase your risk adjusted returns by adding the Swell Global strategy alongside your Australian equities holdings.

What is your risk appetite?

Our risk appetite is comparatively low. We do not seek the possibility of a higher return with greater risk. Rather we pursue the probability of a good return with lower risk. Our objective is an annual 9% return after management fees over a rolling three year period which reflects our inherent preference for prioritising risk … Continued

What are the investment risks?

The Standard Risk Measure considers equities investments as high risk. Investment risks may come from a variety of sources including fluctuations in stock prices, currency or interest rates as well as counterparty problems. Government or policy failures around the world may impact any of these. The strategy has no significant exposure to liquidity risks because … Continued