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Investment Beliefs and Process

The foundation of our investment philosophy is based on a core set of investment principles that we believe are indispensable. These core principles underpin the process and framework and act as a relative North Star for our thinking. They are;

  1. Experience counts;
  • Time in the market has no substitute.
  • Managing risk through all scenarios, battle hardens the individual.
  • All of this assists the manager in conceptualizing potential risk.
  • Challenge cognitive dissonance and convenient truths.
  1. Proactive origination of relationships, assets and risk drives quality outcomes;
  • A deep understanding of what is driving asset valuations will add value.
  • Anticipating and reacting to market movements appropriately is critical.
  • A network of market participants both local and global will drive opportunities.
  1. Our experience in fixed income markets teach us that mistakes are severely punished;
  • Idiosyncratic risk matters.
  • Research will be rewarded.
  • Stock selection is about avoiding the "duds".
  1. Inefficiencies exist in all markets;
  • Investment markets overreact.
  • These markets can result in assets trading at deep discounts or significant premiums.
  • Good market intelligence gathering can exploit these inefficiencies.

Good market intelligence gathering can exploit these inefficiencies. Diversification and correlation works differently in a functional market environment than it does in times of elevated stress and heightened systemic risk. Understanding the complexity of diversification and its ability to assist in managing risk or creating opportunity is fundamentally important. We believe market inefficiencies can be identified and exploited. When markets are inefficient, markets and securities can be mispriced. These securities tend to revert back to their 'true' or 'inherent value' once the wider market can digest all of the available information – but this process can take time.

Realm Investment House adopts an outward looking investment approach that is underpinned by a market intelligence gathering process, akin to good old fashioned detective work. This research lead approach identifies and exploits market inefficiencies.

Our beliefs ensure that when a portfolio is being constructed, advised, managed or when a security recommendation is made, that the client gets what they expect and that a true to label outcome is delivered.

 

 

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