We might not always know where we are going, but we damn well better know where we are. Accordingly, we start by considering the current economic and market environment, and what implications that has for our portfolio construction and the appropriate amount and type of risk.
Identify thematic and idiosyncratic opportunities through a variety of methods. We are always scouring the market for the most promising opportunities, through analytical models, research and dialogue.
Opportunities are evaluated on a risk reward basis. We utilize quantitative analytics, fundamental research and technical analysis to assess the valuation of an investment. The most promising opportunities are then assessed based on their suitability for our portfolio.
After our analysis, we identify the best security to express the trade and evaluate its liquidity. We also determine the appropriate size of the position and both our entry and exit strategies. We then leverage our market knowledge and relationships to execute at the best possible price.
We continuously monitor the risks and performance of the investment, in isolation and as part of the greater portfolio. We also re-evaluate the trade based on the current price, market conditions and other opportunities. Trades that have reached their profit targets or stop losses are exited.
There are lessons to be learned from every trade. As a feedback mechanism, we review the thought process and justification behind our investments against their actual performance.