"Our policy is to concentrate holdings...When we are convinced as to attractiveness, we believe in buying worthwhile amounts."
Warren Buffett, 1978 Letter to Shareholders
At NAOS Asset Management we believe that equity market inefficiencies create excellent investment opportunities especially in the emerging company's space. Inefficiencies arise due to the investment community's historical inability to price stocks early in their business cycle for the following reasons:
>> Lack of established profitability
>> Poor understanding of competitive advantage and potential scale
>> Reduced liquidity due to market capitalisation and/or concentrated shareholdings
>> Bias to particular stocks and industries e.g. mining and financials
>> Little institutional research on emerging companies
>> Fear of perceived lack of execution ability
These misconceptions lead to market inefficiencies allowing NAOS to take advantage by interviewing management teams on a weekly basis providing a firsthand understanding of a company's competitive advantage, business objectives and execution ability.
NAOS will carefully select investment opportunities and structure a 130/30 portfolio with a disciplined and risk controlled approach to shorting. The 130/30 structure will allow NAOS to maximize alpha generation well ahead of the benchmark over the medium to long term, something a long only fund manager is unable to do. NAOS is able to short sell either an index or specific stock that the investment team believes is fully valued and then reinvest these funds back into a long investment that is trading at a discount to its potential fair value. This allows the investor to get 130% exposure to small/micro cap investors as opposed to just 100%
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)