Menu

Quality Investment Style

Our investment style is traditional, timeless and has its own performance and risk character. We believe that a clear, disciplined and systematic analysis offers the key to sustainable investment success.

We invest in corporate excellence

At the heart of our philosophy are investments in companies, which are leaders in terms of their financial solidity, business model, market position and management.

Across all asset classes, our analysis is exclusively based on the proprietary research and analytical tools.

The selection criteria have a proven influence on the corporate success of a company. We have a 100% bottom-up and best-overall approach.

Strict monthly investment process

  1. The first step of our three-stage investment process is based on proven quantitative metrics that narrow down respective investment universes (e.g. MSCI World index) and pre-select companies for further qualitative analysis. Here, we check for various indicators in order to identify companies that would match our defined standards for Quality at Attractive Valuation.
  2. Quantitative selection is followed up by more extended check, where stability of fundamental characteristics are assessed alongside with soft factors, such as strength of managerial backbone, attractiveness of the addressable market and progress in the area of Corporate Social Responsibility.
  3. Companies that have made it through the second step are then discussed at Investment Committee meeting and are added to the portfolio in case unanimously positive decision has been achieved. As a result, portfolios are formed, offering various additional customized overlays (e.g. dividends, sustainability, themes etc.).

BOTTOM-UP, BEST-OVERALL APPROACH

Not all sectors are equally able to generate quality companies, whether this is due to their regulatory framework, or simply as a result of structural change.

Quality Companies

At the heart of our philosophy are investments in companies, which are leaders in in terms of their financial strength, business model, market position and management. In addition, the stock must be valued both absolutely and relatively attractive.

Have a solid financial foundation, healthy balance sheets and conservative financing
Therefore, they are hardly dependent on loans and have real options regarding growth and acquisitions.
Use the capital profitably and effectively, while benefiting from competitive advantages
That's why they generate attractive, recurring income from their core business.
Serve attractive markets with proven business models
That’s why they benefit from good market positioning and above-average profitability.
Are led by competent and stable management teams
Therefore, they are more capable of mastering challenges and managing the industrial life cycle.
Take care of social and environmental aspects in their business activities
These companies create long-term value for all involved and thus guarantee their own survival.
Latvia
Dzirnavu 42, Riga
© 2021 Alphinox. All Rights Reserved.
Website made by