Our Investment Approach – Rigorous, Disciplined, Successful
TenSquared Investments’ three portfolio managers have extensive experience managing portfolios for major insurance companies, pension funds and mutual funds. Our participation on the investment committees of major Foundations also provides us with insight into the unique requirements of this market segment.
Our rigorous, disciplined investment approach has a record of success. Our goal is to provide our Institutional & Foundation clients with superior risk-adjusted returns. We accomplish this by working with their Investment Committee and/or pension advisors to clearly define the investment mandate. We then construct a concentrated portfolio that combines securities identified using fundamental analysis with risk-management that reflects our broad expertise and investment disciplines.
THEME FOCUSED, FUNDAMENTAL, DISCIPLINED INVESTING
Our investment strategy is best described as Optimized GARP. Client portfolios combine elements of ‘growth’ with elements of ‘value’ because our disciplined process seeks to identify great companies that are also great investments. Portfolios also employ an income/value component for risk-management purposes, to temper portfolio volatility.
OUR INVESTMENT PROCESS
Fundamental analysis is at the core of our investment process. Valuation is an important consideration, but it is only one element of our decision-making. We work to understand the growth prospects for each business we analyze. Our process considers the prospects of individual companies in the context of their industry, and the broader secular themes that will impact the macro-business environment. Understanding the industry dynamics helps us assess the likelihood of the firm’s strategy being successful. This is central to our stock-selection process.
Our investment process has 6 steps:
- Our Investment Universe is mid-large cap public companies.
- We identify businesses with strong management teams, sustainable competitive advantages, reliable cashflows, low financial risk and above-average returns.
- We assess the valuation of these firms to determine their overall investment appeal.
- We consider the main themes that will impact the capital markets and industry sectors over the coming 18-24 months.
- We construct a portfolio reflecting the investment mandate. Working as a team ensures that each client benefits from our combined expertise. The resulting portfolio combines attractive valuation, strong business growth prospects and income, with optimized diversification for proper risk management.
- Continuous monitoring and review of individual companies, and the overall composition of each client’s portfolio.