Our Investment Objective

We aim to achieve the highest investment return for our clients adjusted for the risk we incur, net of all expenses. In pursuing such objective, we will:

    1. Allocate the assets of our clients consistently with their risk profile.
    2. Invest across the capital structure of companies (equity and credit).
    3. Deviate from benchmarks, which also include low quality securities. Our “active” share will therefore be significant.
    4. Invest globally, to ensure that we search for attractive securities within the widest possible investment universe.
    5. Minimise transaction costs, by making sure that our disciplined investment process selects the right securities in the first place, reducing trading and other frictional costs (bid-offer spread, stamp duty tax, capital gains tax).
    6. Always maintain a long term focus and a business owner mindset.

Our Investment Process​

We invest in a portfolio of companies with superior business models which consistently grow their earnings at above average rates and generate intrinsic value in a variety of economic conditions. Such companies have leading market positions, durable competitive advantages, high returns on capital and profitability, strong free cash flows, superior organic growth prospects, strong management teams and prudent balance sheets. We are not willing to invest in low quality companies or sectors, regardless of price. Our investment process is rigorous and based on both quantitative and qualitative factors. Prior to investing, we conduct a detailed fundamental due diligence based on an investment checklist which we have developed and refined over time. We favor a moderate, not excessive amount of company and sector diversification. Typically, we will hold a portfolio of 25-30 companies with low turnover, giving our companies time to grow. We do not adopt market timing or short term trading strategies and do not invest in derivatives. Our approach is repeatable and has been tested by numerous market and business cycles. Although not our primary objective, we believe that we will be able to perform significantly better than our benchmarks by rigorously applying our investment process.

Valuestream Investments SA - We aim to achieve the highest investment return for our clients adjusted for the risk we incur, net of all expenses. Chiasso, Ticino - Switzerland

Our Approach to Risk

Risk is a key factor in our investment equation. We believe that risk is a subtle, multi-faceted concept which cannot be entirely captured by a single number such as volatility. We feel that the greatest risk for an investor is permanent capital impairment on a real basis (inflation adjusted). We aim to prevent this risk by investing in the highest quality companies trading at prices we consider reasonable, achieving the most efficient risk-reward profile for our clients. Our companies tend to have below average risk by being inherently above average in terms of business quality. Such companies create intrinsic value which over time translates in price appreciation. This contributes to protecting and growing the long-term purchasing power of our clients. Many investors feel that a concentrated portfolio poses greater risks as opposed to wide diversification. Instead, we believe that a portfolio with too many holdings introduces the risk of not knowing the businesses adequately. As great companies are scarce, a concentrated portfolio ensures quality maximization. Therefore, we believe that concentration can actually reduce risk. Allocating money to a selected number of high quality businesses has been a powerful way to magnify the impact of our rigorous investment process over time.

Our Alignment with Clients

Valuestream is an independent investment management company. We act without conflicts of interest, always placing client interests first. We will only invest client money as we would invest our own.