We are focused on generating alpha, on a total return basis, through stock selection. We employ a rigorous fundamental framework, and believe in active equity investments, in the form of a concentrated, high-conviction, equity portfolio in companies with long-term and sustainable businesses. We seek to invest in outstanding companies where we have a strong fundamental understanding of the business, while developing a deep understanding of the macroeconomic environment to manage investment risk. We strive to regularly engage with the companies and management teams with whom we are invested.
Our equity portfolio is dynamically risk managed to ensure that we limit our direct market exposure, hedge any unintended risk factor bias, and optimize our portfolio to generate alpha and total returns.
We seek to achieve a combination of current income generation, in addition to alpha capture across our credit portfolios. Utilizing a strong fundamental approach to credit selection, we also have the flexibility to invest across the capital structure of companies we evaluate thereby providing us with multiple sources to create alpha and income across the credit spectrum. We are industry agnostic and invest across all sectors globally.
We are focused on income-generation through a carefully constructed portfolio of short-dated investment grade and high yield credit instruments, through a hold-to-maturity style portfolio. We invest in securities with strong credit quality, minimal duration risk and/or interest rate sensitivity, and where we perceive predictable and predetermined returns through maturity.
Third-party fund managers
We maintain a well-diversified portfolio of private equity, real estate and hedge fund managers, as part of our Alternative Investment portfolios. We seek to administer a portfolio of external managers to diversify our sources of return, complement our own direct investment objectives, as well as participate in investment strategies which we are unable to create ourselves. Our dedicated investment team is tasked with finding and conducting due diligence on these managers, and ongoing monitoring of these investments.
Direct private equity investments
In making direct investments, we seek out firms with strong growth potential and conduct in-depth due diligence to ensure that they meet our investment criteria. Our key requirement is that they should be leaders in their market segment. They should also have a strong management team in place – while we may offer advice, we do not replace their existing management. We strive to be an active shareholder, good partner, and well-aligned to management teams and their vision.