Black Swan – an event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict
WHY TECHNOLOGY?
GROWTH
- Technology advancement has represented one-third of the economic growth in the U.S. over the last 50 years
- Most dynamic and powerful engine of modern economies and the backbone of the digital economy fuelling major business transformations across all industries
- Exponential growth in disruption driven by modern technology
OPPORTUNITY
- Every sector of the modern economy relies on technology to improve quality, productivity, and profitability
- Advancements in computer processing power, data storage, chip design, enterprise mobility, and many other developments are enabling significant opportunities that were once impossible, both technologically and economically
FORESIGHT
- Rampant competition and rapid obsolescence cycles in the sector requires specialized due diligence and industry insight
- Industry characteristics match our core competency in anticipating innovation and invention
RISK MANAGEMENT
Capital preservation through risk management is the cornerstone of our investment process:
DIVERSIFICATION
Our portfolio of 35 to 40 stocks is well diversified across 11 technology subsectors
PORTFOLIO REBALANCING
We utilize various risk metrics, such as portfolio standard deviation, correlation and value-at-risk to optimise portfolio holdings
MINIMIZING VOLATILITY
By evaluating macro fundamentals, technicals and capital flows, we take various derivative positions to lessen portfolio volatility and and shield investors from costly market selloffs
MAXIMISING OPPORTUNITY
Occasionally, derivatives are employed to leverage the stock portfolio or hedge the portfolio if a “Black Swan” event is on the horizon