Guru Value Strategy
Managed by Veda Financial
5.0%
Last 30 days
12.7%
Last 90 days
34.6%
Last 365 days
2.39
Sharpe Ratio
-10.3%
Max Drawdown
Guru Value Strategy
Managed by Veda Financial
5.0%
Last 30 days
12.7%
Last 90 days
34.6%
Last 365 days
2.39
Sharpe Ratio
-10.30
Max Drawdown
Risk score
Strategy Stocks
AUM fee 1.50%
Requirements
• Investment minimum: $10,000
or Sign up to invest
Value and Growth are joined at the hip – Warren Buffett. The goal of the Guru Value Growth strategy is to achieve consistent returns, exceeding market performance in up markets and limiting losses in down markets. The strategy is to select stocks that have strong fundamentals with durable competitive advantages, and enter into positions when the markets provide an opportunity to acquire at favorable prices. Additionally, the equity should have strong growth prospects and outlook for increasing shareholder value at the current time or in the near term. The overall philosophy is to buy stocks and hold them over a period of time allowing the stocks to reflect their true value potential.
Research
The investment methodology is based upon a bottom up rigorous fundamental analysis plus a top down understanding of the macro factors and market dynamics. While we pick companies for investment based upon strong fundamentals, the timing of the investment (or more importantly the exit) can depend upon the overall dynamics of the sector. For example, if we identify a solid company whose profits are strongly connected to a particular commodity which currently has weak demand or excess supply, we will wait to see strength or upwards pricing pressure before investing.
Approach
(1) Further select stocks based upon value and growth using a 31-point checklist derived from 129 parameters
(2) Narrow down to stocks that are trading for favorable prices compared to valuation, using fundamental analysis
(3) Pick names that have immediate catalysts for growth and price appreciation
(4) Purchase stock when pricing is favorable
(2) Narrow down to stocks that are trading for favorable prices compared to valuation, using fundamental analysis
(3) Pick names that have immediate catalysts for growth and price appreciation
(4) Purchase stock when pricing is favorable
Allocation discipline
The portfolio will generally consist of 10-20 long equity positions in stocks that have strong prospects for growth, bought at a good value.
Sell discipline
Our investment philosophy is geared towards the long term. However, we have a strict sell discipline that includes the following - sell stock when a better opportunity comes along, sell stock if a predetermined loss level is hit and finally, even when fundamentals appear perfect, it is possible for stocks to languish for an extended period of time for reasons that are not obvious. We recognize that it is never possible to know everything about a particular company and it might be necessary to sell a position to protect the investment and deploy the capital in a better opportunity.
Exceptions
Changes are made to the portfolio as needed with the absolute goal of capital protection and enhancement.
