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investment
philosophy
Cannon Asset Managers’ core investment belief is that
capital markets – which include the equity, bond and
property markets – are inefficient. Given the right
resources, an appropriate philosophy and a strict and
consistent investment discipline, an active investment
manager should be able to exploit these market
inefficiencies to produce superior portfolio results.
Asset allocation resides at the heart of successful
portfolio performance. Our investment team, which is made
up of people who enjoy substantial depth in their
industry experience, is dedicated to persistently refining
our investment process and models so that we are continually
building an improved understanding of the complex and
dynamic world of capital markets and investment finance.
This ever-improving knowledge of the industry means that we
give a high level of attention to the task of achieving
appropriate strategic asset allocations in our investors’
portfolios – a task that explains a significant degree of
investment return and portfolio risk.
Once appropriate asset allocations are established our task
turns to sector and stock selection, a process that is in
cemented in three overarching principles:
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We believe that a consistent and disciplined application
of our value-investing philosophy will bring the
time-tested merits of the approach to our investors’
portfolios;
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We consider emotion to be a primary driver of portfolio
underperformance, and so employ a strict quantitative
stock selection process to inform our stock picking
process; and
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We know
that time is one of the most powerful ingredients in
portfolio performance. Indeed, when it comes to
results, value investing emphasises the accumulation of
wealth over the long term as opposed to the pursuit of
potentially fleeting short-term gains. Thus, patience
is considered a key ingredient in our management
process.
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