Investment Process

As a rule our portfolios invest in 30 – 35 different stocks, broadly spread across the investment market sectors. Position sizes typically range between 2% and 7%, regardless of market weighting in the JSE ALSI or SWIX indices. We are benchmark-agnostic in our asset allocation and stock selection, but measure our success relative to the ALSI for comparative purposes only.

We believe investment boutiques offer investors the opportunity to outperform large investment firms:

  • With smaller assets under management than large investment firms such as banks, life companies and well-established asset management companies, boutiques are able to take meaningful positions in mid-cap stocks that may one day become large caps as a result of tremendous growth off a low base.
  • Staff of boutiques such as ours share in the success of our clients in that staff rewards through business ownership are linked to the success of our investors.
  • Active management boutiques typically don’t adhere to benchmarks as stringently as large companies. Risk management and mitigation in larger firms often supports benchmark-hugging.