APS’ disciplined approach has invariably been validated by our superior track record over the long-term. We also tend to do particularly well in crisis — the Asian financial crisis, the bursting of the dot.com bubble and the recent credit market crisis. This has been a direct result of quality research done by a strong and experienced Investment team, adopting a proven investment approach that is truly independent and robust.
We believe that a close knowledge of the companies in which we invest is a necessary condition for long-term out-performance, and that this can be achieved only through rigorous primary research. Therefore, company visits and field investigations form an essential part of our investment work. In our views, we conduct primary research with the depth and skills unmatched by many of our competitors.
Our research is conducted by an Asia-based predominantly Asian team with local knowledge and Asian language skills of the countries we invest in, giving us an edge over many of our peers. Additionally, the wealth of experience of our investment professionals in researching Asian companies and, more importantly, their willingness and the intensity in which they conduct primary research in search of the alphas has made our approach even more effective. On this score, we believe that as a solely Asian specialist, we will continue to add value.
We are reluctant to engage in the kind of diversification widely seen in many institutional portfolios. We prefer to have a portfolio of stocks that we know well, rather than one with considerably more stocks that we are unable to monitor closely. We believe that company-specific risks are already substantially reduced through our close scrutiny of the business fundamentals, and the safety factor imposed by our insistence on buying dollar bills for 25 cents. In short, we believe in focusing on fewer companies and tracking them well, rather than looking at many companies and losing track of them.
Our strong investment conviction, as a result of our intimate knowledge of company fundamentals and a good handle of valuation, also make us very successful contrarian investors. For markets that are constantly influenced by wild market swings, our approach enables us to exploit such opportunities when they arise.
Our “alpha efficient portfolio” strategy distinguishes us from others and will continue to produce out-performance on a consistent basis.
We invest significantly our own wealth in all of our products. We believe in the philosophy of eating our own cooking. We invite you to co-invest with us if our investment philosophy and process suits your taste.
