JVSakk Group

We continuously monitor portfolio performance to evolve investment process and equities selection technique, utilizing proprietary benchmarks to gauge active investment performance and facilitate performance attribution to improve ‘true Alpha’. In addition to monitoring tracking error, JVSakk employs a security-level performance attribution model that reflects and evaluate the firm's investment decision process.

• Systematically identify and exploit price discrepancies caused by human bias such as over optimism or pessimism.
• Overweight stocks with high ratings and underweight stocks with low ratings while minimizing risk to create our portfolio.
• We take a long term view on investments and believe that over time, companies which are mispriced will be back to equilibrium. We seek to invest in enterprises that can have strong competitive edges which are substantially underpriced.
• Thorough on-going qualitative research and investigation along with meticulously implementing our proprietary pricing models will help reveal the intrinsic values of the stocks.
• As a mispriced stock could stay in inequilibrium for a long time, market timing is also incorporated as a pivotal process when using our proprietary price efficiency analysis.
• We continuously evaluate, test and refine our investment process to enhance risk adjusted Alpha.

Buy Discipline

We employ a combination of top-down and bottom-up approaches to determine holdings of the portfolio in order to maximize performance:

• Top-down fundamental analysis to quantitatively examine macro factors such as political events, trade policies, interest rate movements, and monetary and fiscal policies to determine relative values of various equities.
• Bottom-up stock selection based on intensive proprietary research and disciplined, rigorous investment process.

Sell Discipline

A price increase in a stock is not reason enough to sell.  We particularly sell stocks when :

• A company's earnings potential has run its course,
• The company has been embraced by the investment community to such an extent that the potential for favorable surprises has been priced into the stock,
• We deem them to be mistakes,
• Sell for portfolio reasons. Not comfortable holding disproportionate large positions in a portfolio, no matter how attractive a company's prospect is. Out-sized positions represents too much risk in the event that the company stumbles,
• Trimming large positions in equities on the way up as an investment matures.

Risk Management

We strongly believe that good risk management and internal control is a critical component of our business and forms the foundation for a safe, sound and sustainable business. More importantly, a strong and effective system of internal procedures and control will help to ensure that the goals, needs and objectives of our clients are met.

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