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 make it into the portfolios. As long as we are able to find enough good ideas, we will continue to add alpha through active stock selection.
Our investment philosophy is completely benchmark agnostic and, therefore, there is no need to cover all stocks in detail simply because they are part of some index.
Our initial universe is 10 000 stocks, for which we have access to broker research to about 4 500 of these. Using effective data visualisation techniques, our analysts are likely to have an average of only 30 stocks on their screens at any point in time.
Given the depth of experience in our team, we are able to sufficiently cover the local market (mostly mid and large cap stocks).
The result is a high-conviction portfolio where, for example, our Rezco Value Trend Fund has only around 30 stocks, on average.