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Investment Style & Process
INVESTMENT STRATEGIES
Portfolio strategy and structure dictates many of the risk and return characteristics of an investment portfolio. At White Funds we run a small range of investment portfolio strategies and structures, each one carefully designed to provide a particular balance of risk and potential return.
Some of the common philosophies that govern our investment strategies are:
- We seek to avoid the pitfalls of over-diversification, while retaining the diversity we require for risk control purposes. Problems with over-diversification include good investment positions having little impact on overall portfolio returns and high certainty investment positions being mixed with lesser certainty investment positions resulting in the benefits of good positions being offset by lower certainty investment decisions.
- In our portfolios we seek to give prominence to those investment positions we consider offer the most efficient balance between likely return and the associated risk or certainty.
The White Funds Management range of investment strategies are:
White Funds Management Australian Shares
The White Funds Management Australian Shares strategy holds a moderately diversified portfolio of Australian industrial and resource shares. Within this portfolio a controlled emphasis is given to stocks whose realistically achievable level of future earnings are considered to offer the potential for stronger rates of investment return relative to current prices.
The portfolio’s moderate diversification provides a robust level of risk control, while its carefully controlled exposure to a concentrated suite of key overweight and underweight positions offers the potential for a consistent and significant margin of relative outperformance.
The portfolio contains around 60 holdings. The White Funds Management Australian Shares portfolio seeks to provide a rate of investment return which consistently provides a solid margin of outperformance above the ASX100 Accumulation Index.
Whitefield Ltd & Sylvastate Ltd
Whitefield and Sylvastate each hold a broadly diversified portfolio of Australian industrial shares, with a significant emphasis given to stocks whose realistically achievable level of future earnings are considered to offer the potential for stronger rates of investment return relative to current prices. The portfolios contain 30 - 60 holdings. The portfolios seek to provide a rate of investment return which exceeds the All Industrials Accumulation Index.
Whitefield and Sylvastate are listed investment companies whose shares may be purchased on the Australian Stock Exchange.
White Funds Management Cumulus Fund
The White Funds Management Cumulus Fund is an absolute return fund, holding a highly concentrated portfolio of listed Australian shares and units. The Fund may utilise leverage to magnify the benefit of investment outcomes, may short sell, utilise associated derivatives or hold cash.
The Fund seeks to generate a robust positive annual investment return in the majority of economic conditions. While the inherent value of achievable future earnings remains a core consideration in the assessment of each stock, the Fund gives greater emphasis to momentum factors when assessing the scale and direction of the likely investment opportunity.
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