Portfolio Construction

After we have assessed both quality and value, we will then construct higher conviction but reasonably diversified portfolios from our best ideas (typically 30-40 stocks).

Portfolio weightings reflect: our level of conviction; the extent of the valuation gap we see between the current market price and our assessment of value; and our views on appropriate investment timing.

To help manage risk we set individual stock risk parameters (+/- 5% from S&P ASX 300 Index weighting, with 50% allowance for price drift).

We continually monitor the portfolio to ensure that we remain true to label, redeploying capital when stocks trade well in excess of our assessment of their value.