Our investment philosophy
The Hood Sweeney Securities Investment Committee selects investments for review by applying our investment philosophy.
We seek value whether it is for share price or unit price. To find value we look for quality companies or managers who may not be in favour, but whose long-term outlook and fundamentals indicate there is more to the story and it may be worth our time to research them and determine if there is an opportunity.
We utilise an absolute return style of investing which is not tied to a benchmark or index. Our aim is to produce a consistent positive return over time, regardless of the prevailing market conditions. This is of most benefit during market corrections and downturns.
Capital preservation is important to us and is about protecting the monetary value of your financial assets. The main way to achieve this outcome is understanding how to adjust a portfolio through market cycles. Successfully navigating market cycles relies on active management and flexibility.
Sometimes a great investment is found where widespread pessimism, based on temporary bad news, has resulted in a knee-jerk reaction by the market. Focusing on the value of companies and managers helps us respond appropriately, and make measured investment decisions, which may differ from the majority. If we take a contrarian position on an investment, it is only if we are satisfied that value will be driven by the quality of the company or manager.
We have an active management approach, which relies on focused research across both the macro (economy) and micro (individuals and businesses). The value gained from active management is dependent on how robust and in-depth the research is. We utilise the same research software to undertake our investment analysis as is used across the funds-management industry. This is augmented with discussions with Fund Managers and Senior Managers of the target investment.