Investment Approach

Thursday, 05 December 2013 23:04

Our long term investing approach focuses primarily on bottoms-up fundamental analysis with a contrarian tilt. We believe in tactical strategies directed towards taking advantage of market mispricings that lead to value opportunities.

Asset prices reflect expectations for future risks and financial performance. Our task and objective is to anticipate revisions in those expectations, and to understand the components that are “priced in”.

Our investment process focuses primarily in:

Fundamental analysis

  • Corporate value drivers
  • Industry analysis
  • The economics of strategic behavior
  • Company analysis and sources of competitive advantage
  • Credit analysis and company valuation
  • Identification of mispriced expectations

Macro analysis

  • Global and local political outlook
  • Global and local monetary policy
  • Economic fundamentals (GDP growth, credit and business cycles, FX, interest rates, inflation, energy prices, productivity, trade and current account balances, etc.)

Behavioral analysis

We try to identify the psychological flaws and behavioral weaknesses inherent in the investment process that could be a largely self-imposed handicap when it comes to making an investment decision.


We are monitoring inherent technical factors that might affect the value of an asset. Financial markets are complex systems in which one has to analyze the interconnected relationships between the actors in the systems. We refer to “Plumbing” to describe “what is going on underneath the lid” in these complex systems.

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Rochen Ltd.
Support Technician · San Diego, California

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