Prudent Investment – A Philosophy Designed for the Longer Term.
Central to Sparinvest’s philosophy is our belief that an investor’s trust in a manager should be rewarded by intelligent decisions rather than by speculation – in other words, by a prudent approach to investment.
To us, ‘prudent investment’ means an emphasis on capital preservation and a full downside risk assessment of each investment opportunity. In our desire to preserve capital, minimise risk and still generate good long-term returns for investors, we adopt a strategic approach to the allocation of assets within an investor’s portfolio, seeking to obtain a healthy diversification of carefully selected assets. Our investment processes are focused, disciplined and designed to achieve superior performance over the longer term. Of course, we also believe that this superior long-term performance is the defining hallmark of a prudent investment.
Decades of evidence show that market timing is more a matter of luck than judgement, therefore we avoid tactical, short-term market plays and concentrate instead on pursuing those academically-proven investment strategies that are likely to generate better returns for our investors over the longer term.