About us

Our investment approach

At Thesis, we believe that different asset classes do not generally move in step with each other, and therefore holding a diversified variety of assets helps to moderate the level of risk in a portfolio. While we will often want to reduce the weighting to an asset class whose prospects we do not like, we always need to maintain a level of diversification.

In order to implement diversification within our portfolios, we have set a strategic range for each of the main classes of asset equities, alternative assets, cash and fixed interest in each of our seven investment mandates. Our tactical positioning can fall anywhere within these ranges, but not outside.

This ensures both that portfolios do not become too concentrated and that their risk levels are unlikely to cross over each other (for example the mandate 5 of 7 should always be less risky than mandate 6 of 7). Only if we foresaw extreme circumstances for one or more asset classes would we choose to take any of the mandates outside their ranges.

We believe that investors typically prefer to avoid losses than take the additional risks associated with outperforming the market. With this in mind, we take a risk averse approach to managing investments, focusing on diversification and actively monitoring portfolios to ensure that they remain within their long term strategic asset allocation parameters.

 

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