Thanks Phil ...... I haven’t even nearly got my head around what’s going on but I have been having a good time dipping the toe of my head into the ocean of goings on...
I liked finding the coincidence where the shaping of the chart from last time we were at this level paralleled - except for being higher and more extravagant....
..and even better was finding the Vinva connection to the 2010 nosedive .
Vinva does keep it’s head down.
It seems the best way to find out about it’s funds is toread what other other managers have to say:
Here’s a bit from IOOF (2011)
(Maybe this is the fund invested in NWH as this one doesn’t typically choose ASX 200 )
Cheers
Here’s some of the ‘spiel’ - (not in order ) https://www.ioof.com.au/__data/asse..._MultiMix_Australian_Shares_Trust_-_Vinva.pdf IOOF MULTIMIX IOOF MultiMix Australian Shares Trust – manager profile Vinva Australian Equity Alpha Extension Fund –investment strategy This stock selection partial long-short strategy invests in a core holding of listed Australian companies and takes short positions in a smaller number of stocks. The portfolio invests in about 150 Australian stocks across all sectors of the benchmark. The portfolio is designed to be relatively style neutral through time and perform in all market cycles. This strategy does use derivatives to reduce costs, control and manage risk and increase exposure to specific investments and markets. There is no gearing in the Fund. The Fund was established in January 2011 and is an active stock selection strategy. Funds under management in this strategy as at mid September 2011 were approximately $1 .1 billion.
...... ......... Investment philosophy
Vinva’s philosophy is based on the belief that markets are not perfectly efficient, and there is scope for skilled active managers to earn excess returns (alpha) over and above the returns achievable via a simple indexing strategy. To generate consistent outperformance (alpha) Vinva first identifies where market inefficiencies exist. This occurs via its research process and by its investment professionals having a deep understanding of the local market in which they operate. Vinva researches the underlying economic drivers causing a particular inefficiency to exist, examines why the inefficiency is likely to persist in the future, and assesses how much risk capital from other investors is chasing that particular opportunity over time. Vinva also examines in which market conditions and in which subset of stocks the alpha opportunity is strongest. Having skilled and experienced investment professionals who have strong relationships in the local market is a critical part of this process, as ultimately these people generate the ideas behind each of the alpha opportunities. Once Vinva has identified a set of ideas, its investment process systematically implements these ideas into its portfolio holdings on a daily (or intraday) basis in the most efficient way possible, taking into account transaction and tax costs, risk, and other factors. Vinva also explicitly takes into account the investment horizon via its proprietary dynamic portfolio optimization technology. Some opportunities are fast moving and vanish within a few days, while others may take months or years to be fully corrected. The final important part of the process is the application of investment breadth in order to maximize the consistency of performance over time. Vinva’s use of advanced technology allows it to process large amount of information in a rapid and efficient manner giving it an advantage over other investors.
Vinva investment process
Portfolio construction is a completely integrated process where Vinva’s stock ranking models, risk models and transaction cost forecasts are simultaneously combined in a systematic and proprietary dynamic optimisation process. This allows Vinva to create efficient portfolios which maximise the expected alpha (after transaction costs) for a given level of active risk. It also ensures that Vinva is only taking active positions where it expects to be adequately compensated. Vinva’s investment process allows it to understand and quantify the complex (multi-dimensional) pricing relationships across securities in the equity market and to identify which sources of return are mispriced by the market at any point in time. Vinva’s overall objective is to deliver alpha to its clients which meets, or exceeds, their expectations. Vinva has a disciplined approach to buying and selling securities. It does not favour one over the other, and treats active positions symmetrically making sure both overweight and underweight active positions are intentional and driven by economically sound reasons. The target portfolio weights, which are the output of Vinva’s dynamic portfolio construction process, determine its buy and sell decisions.
(20min delay)