Enhancing your purchasing power is our mission
Our mission is to protect and grow your purchasing power, by focusing on returns in real terms, originating from truly active investment management. Contrary to the so-called ‘passive’ investing, we only invest when duly compensated for the risk we are bearing and we adapt when investment conditions change.
Because the future is unknowable...
Investing is about anticipating the future. Naturally, we can’t foresee the future but that doesn’t mean we don’t know anything about it. We can still anticipate and think strategically about possible futures outcomes and prepare for them. Tomorrow’s prices cannot be predicted, but we can estimate assets’ intrinsic values and only invest when compensated for the risk we are bearing. And, whereas we cannot predict future trends, we strive to recognize them when they are still young and use the signal they emit to adapt our portfolios to changing investment conditions.
...We seek convexity...
We believe the recipe to successful investing is embracing future uncertainty, with portfolios that are expected to offer convex payoff profiles, where the gains from positive outcomes are larger and/or more frequent than the losses from negative ones. Such convex payoff profiles are achieved by investing in assets priced to offer more upside than downside and by adapting to changing investment conditions. In the kernel of our thinking lies the view that simple investment processes are more robust to uncertainty than complicated ones, that negative information is more robust than positive information, and that the essence of investing is management of risk and not return. We combine our ability, as humans, to understand context, see patterns, have intuition and be flexible with the discipline and computing power of the machine, in a way that few investors do.
...To build robust investment solutions
We offer a wide spectrum of solutions - ranging from long-only equities to multi-asset, multi-strategy investment programs - that aggregate the competence of all the investment talent in the Sector group. You can choose the right solution for you, depending on your aversion to risk. We relentlessly manage the risk of permanent impairment of your capital and we strive to minimize the probability that you give up on your investment at the wrong time, by ensuring you feel comfortable with the expected behaviour of your investment strategy during various market conditions.
Co-founder of Sector Asset Management with more than three decades of experience from analysis of the global economy, commodities and capital markets.
Asset owners are swamped by a multitude of assets and investment strategies. However, behind all the noise, there are only five underlying sources of return. Profitable investing necessitates both an understanding of such underlying sources of return, as well as, the skills to harvest them.Read more
Everybody is looking for ‘winners’ to invest in. Trouble is, ‘positive’ information is less robust than ‘negative’, and competition devalues ‘positive’ information far more than ‘negative’. Hence the proposed inversion of mindset: eliminating losers rather than searching for winners; minimizing the information employed; striving for simplicity.Read more
Mr. Market’s weakness is weighting portfolio positions based on market capitalization. Even monkeys have discovered they can beat Mr. Market, as long as they sever the link between price and portfolio positions’ size. This is the first step on the road to beating Mr. Market. Skilled active management is the continuation.Read more