Investment Philosophy

  • The objective is a high return of 10-15% annually by investing into baskets of very diverse assets.
  • Many assets are under-recognized, under-invested, are offering very high returns, yet they are diversified over many issues and so provide a steady stream of what can only be judged as excessive return.
  • We model a severe and combined Stress Scenario and allocate capital such that the expected loss in such a scenario would be no worst than -10%.
  • Strict counterparty risk management is in place limiting the exposure to any one bank, broker, exchange, or loan broker.
  • The fund is passive in the sense that we don’t pick single stocks and we don’t frequently time the market.
  • The fund is active in the sense that the capital allocation to the loans and other assets is over-sized compared with their prevalence in the (easily accessible) investment universe.
  • We invests in personal loans, real estate loans, real estate equity, invoice financing deals, (a handful or less of) private equity deals, and we are exposed to global stocks, high yielding bonds, and long term US government bonds.
  • Highly capital and tax efficient.
  • Available in almost all jurisdictions.
  • We provide instructions on which amounts are taxable to our shareholders as per their local tax law and reporting convention.
  • The assets are denominated in a variety of currencies but we hedge them back to the USD. We can assist in setting up an overlaying hedge to any other currency.