Investment Philosophy
Investment Philosophy - One model portfolio
CAM seeks superior returns from equity investments for its clients, while at the same time rigorously managing risk.
CAM believes in having one optimised portfolio for all clients. The portfolio is structured for capital appreciation with emphasis on P/E valuations and earnings growth, as well as critical financial ratios such as Return on Equity, Cash Flow and Net Debt to Equity.
CAM's approach to minimising equity risk is to acquire an in-depth knowledge of the companies that we invest in. The model portfolio is a concentrated portfolio, with the top 15 - 20 companies constituting roughly 80% of the portfolio.
In the first quarter of 2000, we broadened our geographical scope to Far East excluding Japan, from a previously narrower focus on Singapore, Malaysia, and Indonesia. This is a natural progression as the region becomes increasingly intertwined and businesses become more globalised. Despite the expanded geographical coverage, all portfolios will retain their concentration of 15 - 20 core investments at any one time. These investments represent the best risk-return opportunities in the region known to management.
Each investment decision by CAM is backed by extensive research. This includes both quantitative as well as qualitative analysis, and is complemented by regular visits to companies and industry contacts. CAM's extensive network of brokers and business contacts and its usage of news services and technology ensure that CAM is in touch with the latest developments on a global basis.
At CAM, we emphasise asset enhancement and not asset accumulation. We believe that investment managers should spend at least 80% of their resources researching companies and managing funds in order to achieve superior returns. The remaining 20% is balanced between administration and marketing. We have established an effective distribution channel for our services, thus enabling key investment personnel to focus on improving their funds' returns.
We outsource settlement and other fund administration matters. All segregated accounts mandated with CAM will be required to appoint a custodian, enabling CAM to concentrate on investment management. To-date, CAM works closely with established custodians such as HSBC, Northern Trust and UBS to name a few.
Frequency of trades are strictly based on CAM's investment outlook and buy-sell discipline. CAM has not and will not engage in any soft dollar arrangements with brokers or intermediaries. All third party services, equipment and related expenses are borne by CAM. These services are selected based on efficiency, effectiveness and execution - to the benefit of our clients.