At Valedictory, we seek to grow investment capital at a highly efficient compounded rate consistent with managing risk of avoiding permanently lose capital and excessive portfolio value fluctuation.
Process
Our high-level four step investment process:
- Asset allocation: we start with building a prudent asset allocation policy, the most important step of a portfolio
- Asset classes: the asset classes we use and the relevant benchmark
- Portfolio construction: after deriving a base asset allocation policy, we then tilt (or customize) it based on various factors that align with our beliefs and unique circumstances
- Fund selection: we use “best of breed” investment vehicles to populate each asset class
- Stock selection: undervalued small cap stocks to give extra oomph to the portfolio
- Factor investing: a quantitative approach to theoretically sound and time-tested sources of risk/ return
- Rebalancing and trading: we expect to trade infrequently, primarily using cash flows, and generally when investments are 20% above or below its target allocation
- Monitoring: keeping informed on global events and changes in our holdings
- Trading
- Risk management: the types of risks we see and how we try to mitigate them
- Leverage:
Policies/ Procedures