The focus is constantly on portfolio optimization, assessing investors' risk tolerance and capacity. We use a mix of "value", "growth", and to a lesser extent "momentum investing" to meet our clients' demand. The investment policy, characterized by targeted high-value interventions, focuses on the stock & fund picking process and fundamental analysis to create the optimal portfolio. Our method is based on three different strategies:
Kabuto is constantly looking for stocks with prices that do not fully reflect the intrinsic value of these companies. Value investing is based, in part, on the idea that there is a degree of irrationality in the market. This irrationality, in theory, provides opportunities to get a stock at a discounted price and make a profit.
Clients with a higher risk tolerance are certainly served by growth investing. Kabuto selects companies with the ability to meet growth expectations, considering sectors such as biotechnology, robotics, artificial intelligence, etc. In this strategy, we focus on companies with high growth rates, a broad technology platform, and corporations that can become market leaders in the industry. In addition, we try to select companies with a strong and very experienced management team that could guarantee faster growth than the overall market.
According to this method, advisors try to buy stocks that exhibit an upward trend. At Kabuto, we believe that a momentum investing strategy can be developed with no need for full-time technical analysis, as the trading costs often negate the outperformance of this strategy.
Combining these three strategies, especially the first two, can ensure less portfolio volatility while offering more opportunities to generate positive performance for our clients.