All investments are subject to a pre-defined game plan. Inspired by theories within Behavioral Finance, our game plan concept provides a robust framework that disciplines our investment managers to letting profits run whilst containing losses through strict adherence to stop-loss limits. The purpose of the game plan is thus to ensure discipline, focus and transparency in the investment process as the investment managers are committed to act in accordance with pre-defined routines. This enhances the expected risk-adjusted performance as losses are contained and profits excel.
In addition to providing a real-time management system for the hard stop-loss levels, the game plan sets the framework for each investment and includes items such as the rationale behind the position, the expected contribution to the overall portfolio, the expected holding period, expected return, add/reduce levels, etc.
The content of the game plan is stored in a shared database together with all positions and provides the investment team with the ability for continuous and thorough self-assessment.