How We Invest

How We Invest.

Our investment approach is focused on producing sustainable long-term returns for clients

Sigma's investment process is guided by a set of core principles. Our investment approach is designed to maximise the probability of achieving the return objective over rolling 3 to 5 year periods. We employ a fundamentally driven, logical process that clearly articulates the trade off between risk & return for all companies in the investment universe.

Our high conviction strategy means we can deviate substantially from the index at times as we don't believe in allocating capital to stocks just because they are present in a index. We are focused on allocating capital to stocks that can enhance the probabilities of achieving the return objective.
This means portfolios are constructed with only our best ideas. As a result our Active Share, a measure of a fund's divergence from the an index can deviate substantially from traditional funds. However, Funds with the highest Active Share significantly outperform their benchmarks both before and after expenses and returns are persistent from year to year. Clients can be confident they are investing with an active manager and a not a "closet index hugger".
Our aim is to bring together a portfolio of businesses with demonstrated franchise qualities, within industries we understand, run by competent management teams that are trading at substantial discounts to our fundamental valuations. If the business is also judged to have fundamentally lower business risk we are prepared allocate a disproportionate amount of capital.
Investment Process
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