Investment Philosophy
- In: Investment
- Published on Sunday, 02 January 2011 01:05
- By Super User
- Hits: 1765
JVSakk bravely assumes that for the most part, share prices reflect the discounted value of expected future cash flows.
However we also assume that there are enough over optimistic or pessimistic investors to systematically but temporarily bias the prices of individual stocks away from fundamental value.
Our investment objective is build upon the above beliefs in order to exploit mispricing and anomalies to deliver sustainable capital appreciation for investors in emerging markets.
Alpha Thesis
At JVSakk, we believe the followings:
- The market is far from efficient
- In a perfect market, share price should reflect the discounted value of expected future cash flows
- In real life however, many stocks are priced away from their true worth
We have a medium to long term investment horizon by adopting a buy-and-hold policy with stringent profit taking and selling / hedging discipline. We aim to optimize upside potential / downside protection for investor with minimum transaction costs.
Contrarian Value Investment Style
We adopt contrarian value investment style that tends to lag during periods of great stock market buoyancy, and to outperform when the stock market shows low or negative returns.
Intrinsic and Overlooked Value
Going against the consensus is part of our philosophy, but not the whole story. To establish a position in an investment, we must be convinced that there is intrinsic and overlooked value.
Keep Capital Invested
Only by staying invested over the long term can investors portfolios participate in the increased valuation of equities over time.
Patience Investor
Our criterion in going into a position – in addition to low downside risk – is the opportunity to double investors money (at least) over 12 to 24 months period. As long as such potential remains, even if the stock has already appreciated significantly, we will continue to hold the position.
Comprehensive Research
Our portfolio turnover tends to be low, far from being a sign of inactivity, indicates the significant research we do on the target companies and the high comfort level that developed when we know a company well.