The strong performance of conviction fund managers highlights the benefits of active versus index-linked fund management. But the most important strength for a good conviction manager is the ability to generate alpha.
Diversification is designed to limit risk. However, too much diversification may dilute the benefits of having convictions. Our more concentrated approach enables better knowledge and control of each investment selected to generate returns.
Value creation lies in stock selection, stock-picking represents consequently a key element in our strategy. Our main investment focus is the company as such: its strengths, attributes, and the value it can create, regardless of its sector or country.
Conviction + Discipline = Performance