This is the blue chip part of your portfolio. It should generate long-run equity returns with less volatility. We manage with stability and risk management in mind so that “risk capital”, in the form of our Pathfinder Funds, can be blended to meet your overall portfolio return objectives.
To build the Core portfolio, we select stocks and fixed income securities from the “Core 100”: an industry agnostic list of approximately 100 high quality, global companies maintained by Pathfinder. Core 100 companies have defensive industry position, exceptional management, plus a proven history of generating and returning capital to shareholders.
The Core Portfolio is highly liquid and segregated, thus clients are able to see all of their positions (transparency) and cash can be generated quickly if needed (liquidity).
We select stocks from the Core 100 based on fundamental valuation and total return hurdles. We build concentrated portfolios in order to take a true investment stance. We believe that discipline and flexibility will ultimately drive successful risk-managed portfolios.
Cash is actively created (by selling stocks) as part of the equity management process during periods of risk and poor valuation. We believe that opportunistic cash creation is a critical part of the investment management process and can significantly reduce downside volatility. Depending on your profile and investment objectives, fixed income can be blended to provide for a more permanent low risk solution.
While most of the stocks in the Core 100 pay dividends (an important component of our selection process), we also build income-based portfolios for those investors who desire regular cash flow. Each security in the portfolio meets a minimum yield test. The combination of high yield stocks and debentures also tend to offer a lower volatility profile than equities alone.
This fund exploits global themes and hedging with an objective to generate superior risk-managed returns.
We buy stocks and bonds to fit with investment themes identified through our global macro and investment management processes. We believe that momentum in sectors and geographic areas can build into lasting trends and that early global positioning along the full value chain will enhance returns.
As part of our investment management work in the Core portfolios, we identify companies that we feel should be long-term strategic holdings. We take concentrated positions in these high quality and best value names as a base for more aggressive trading operations in the fund.
When components of individual positions, sectors, or markets become less desirable, we hedge out the risk. We do this to protect capital. In our opinion, impaired capital and downside risk are the most undesirable investment results. This part of our process mitigates that risk and levels out the return profile of the fund over time.
This fund was created to protect and grow purchasing power.
Central banks have a stated objective of managing money so that they purchase fewer goods and services over time. Investors need an alternative asset that can be saved and used to purchase more goods and services in the future.
Our objective is that investors are able to purchase 2-10% more each year. If our cost-of-living rises 40% then our objective is to return 42-50%. If our cost-of-living falls 10% then our objective is simply to preserve cash. If this is accomplished, our investors can afford an earlier retirement date in any environment.
We research what asset class will best preserve our purchasing power. An inflationary environment drives us to hard assets so that our capital can rise with the increase in our cost-of-living. A deflationary environment drives us to cash and fixed income so that we can preserve capital while our cost-of-living falls.
This fund invests in high-torque, early-stage companies that have the potential to generate superior returns.
Our investment methodology combines top-down macroeconomic and bottom-up company-specific analysis. We continuously evaluate new opportunities against current holdings resulting in a concentrated portfolio of only our best ideas.
Our large network provides us with unique deal flow, allowing us to evaluate a broad set of opportunities – over 300 per year. Our concentrated portfolio allows for close relationships with portfolio holdings, leading to superior insights. Support and loyalty to companies will allow us to become a partner of choice, improving access to opportunities.
While most positions are comprised of small companies, the portfolio management team focuses on value-based security selection, secular investment trends, and portfolio management discipline to manage downside risk. To this end, we attempt to add value by actively managing position sizes and taking advantage of volatility.