Do you have a minimum number of holdings?

- FAQ -

We do not have a minimum amount per se. However, we are high conviction managers and therefore generally have fewer holdings when compared to our peers. For example, with our Rezco Value Trend Fund we will generally hold between 10 and 20 local equities and between 10 and 15 foreign equities. Only conviction buys are […]

Are managers required to expose their own personal capital to the fund?

- FAQ -

It is not a requirement that Managers expose their personal capital to the funds. However, all Managers believe in our investment philosophy and willingly invest their own money into the Funds. As the statutory seed capital required by law to be invested in the Funds by the MANCO is also invested, the shareholders, who include […]

Could you please provide clarity around your method to understand the extent of the opportunity, rather than to rely on the instrinsic value?

- FAQ, Investment Philosophy & Process - Tagged With:

“The lack of focus on intrinsic value, but rather attempting to understand the extent of the opportunity – we are still quite unclear around this and would like further clarity as to how this is done?” To understand the thinking behind the method we follow (which is quite simple relative to intrinsic value) you have […]

Do you employ a strategic or tactical asset allocation approach to your research?

Both. We have defined strategic asset allocation buckets for each of our funds – the strategic allocations vary by level of conviction. The tactical overlay is represented by changes in levels of conviction and therefore translated to the actual allocation. The conviction buckets are defined at: Portfolio Construction (Steps 04 & 05)

How many investments do you think an analyst should cover at any point in time?

In Step 02 of our six step investment process, we apply a “best effort into best ideas” philosophy and will therefore, by definition, not have a ranking table of stocks. We have various screens and data visualisation tools to highlight potential investment ideas. A key objective of our process is to find enough good ideas to […]