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Investment philosophy

We offer investment products developed for owners of liquid capital, who want not only to preserve its real value but also to receive a conservative income with the low volatility of results.

According to our views the safety of the capital is more important than profitability:
we do not offer promising strategies that involve significant risks for investors.

KEY INVESTMENT PRINCIPLES

Use of deep knowledge

We study the macro situation, markets, industries, individual companies and even shareholders and management in great detail, before making investment decisions. We must understand the market, the state of the industry, the financial situation of the company, the quality of management, the position of shareholders and non-financial risks.

We earn where the object of investment has advantages that are not taken into account by the broad market.

Use of market inertia

The market reacts to news more rapidly than they deserve. Such reaction is stretched in time due to bureaucratic procedures and insufficient attention to the market by big and massive investors.

We acquire instrument at the moments when negative news causes an excessive drop in their price; we also do this at a time when significant news changes our perception of the instrument’s value, and the market has not yet absorbed this change.

Use of information asymmetry

The more well-known the investment, the less profitable it is. The market has many information barriers that prevent most investors from accessing accurate analysis of issuers and transactions, therefore large and conventional investors refrain from buying local securities, small issues, complex structural instruments.

We are looking for small, local, not included in widely used indexes and ratings, little-known opportunities for investment.

The use of arbitration and macroanalysis

Due to the structural features, arbitrage opportunities periodically appear on the markets without significant risk. We follow the possibilities that have a "long" nature, and, in the case of identification, we use them.

We do not believe in the opportunity to replay the market due to "better" forecasting. However, in situations where information asymmetry or the slow reaction effect appears in macro processes, we try to take advantage of the opening opportunities.