The Private Portfolios are a managed accounts service for clients with typical account sizes larger than $250K. These portfolios are managed by a professional fund manager who invests in listed equities. Stocks are selected based on bottom-up analysis of companies with portfolios holding an average of 25-30 positions. Clients have 24-hour access to their accounts via Financial Access Made Easy and a monthly newsletter giving them full transparency of fund manager purchases. Investor sessions are held regularly where our fund managers to provide an update on the portfolio or the market.

Classic

These portfolios are managed by Capital Management’s in-house fund manager. The fund manager is supported by the full resources of the company’s research team in selecting the asset-allocation and individual stocks being purchased for the portfolio.

 

This is an asset allocation portfolio, which means during periods of economic expansion the fund manager will hold on to a higher proportion of stock versus bonds and lower proportion of stocks versus bonds during economic downturns.

 

High-Risk: This is an asset-allocation portfolio where the holdings of stock and bonds vary depending on the fund manager’s view on the market. It adopts an aggressive approach to stock picking where small-cap, high growth companies in concentrated sectors are favored over broad diversification.

 

Medium-Risk: This is an asset-allocation portfolio where the holdings of stocks and bonds vary depending on the fund manager’s view on the market. It adopts a moderate approach to stock picking where mid to large cap companies in reasonably diversified sectors are favored.

 

Quantitative Portfolios

 

Quantitative portfolios rely on computer models to pick stocks. They remain fully invested in equities at all times and are rebalanced systematically once a month. During rebalancing, the weakest stocks are sold and stronger ones are purchased. These all-equity portfolios are structured along three investment styles:

 

Growth: The Growth strategy buys fast growing mid to large cap companies. Peter Lynch, the most famous growth investor, successfully deployed a similar growth strategy to achieve annualized returns of 29% per annum between 1977 and 1990 within the U.S equity market. The computational model focuses on solid companies with a strong growth profile and is suitable for investors seeking capital upside.

 

Dividend –Value: The Dividend Value strategy looks for fundamentally sound stocks that pay good dividends. The computational model focuses on blue-chip companies with high and steady dividends and is appropriate for investors seeking income and modest capital appreciation.

 

Contrarian-Value: The Contrarian Value strategy buys mid to large caps that are disliked by the institutional community (for some reason) and consequently display low valuations. Contrarian stock picks are companies that have fallen out of favor with analysts and fund managers. David Dreman, a famous contrarian investor generated returns between 1988 and 2001 of 18% per annum. The Contrarian Strategy focuses on mid to large cap stocks with low valuation parameters and out-of-favor with analysts. It is suitable for higher risk investors seeking capital upside.

Private Equity Fund

 

We seek to participate in companies which have the potential for growth and which are seeking to raise additional capital for expansion.

 

Region:

PRC, Australia, Singapore, Hong Kong and the ASEAN region

 

Sector:

Alternative energy/natural resources, healthcare, education, consumer and business processing outsourcing including technology

 

Stage:

All stages with a preference for mezzanine and growth stages

 

Instrument:

Equity or equity linked securities

 

Investment Size:

Average investment amount of S$8-10 million

 

Shareholding:

Majority or significant minority

 

Investment Period:

Average 36 month liquidity horizon

 

Board Representation:

Board seat and/or observation rights

Investment Criteria

In evaluating potential investment opportunities, the following key aspects will be examined:-

The background, integrity and track record of the entrepreneur and key shareholders

Composition of the board of directors and management, including evidence of their backgrounds, track records, venture capital funding and support, and corporate exercises or mergers and acquisition deals that they had undertaken

 

The experience and execution capability of the management team, and its ability to identify product needs, significant market potential and cross-application potential.

 

The exclusive nature of the company’s technology, scope of protection of its intellectual property, and the extent of existing and potential competing technologies

The Company’s cash burn rate, cash funding position and ability to mobilize sufficient capital to fund its research and development and other development work

The quality, depth and breadth of products and services in the development pipeline

The existence of significant entry barriers can enable the company to build sufficient lead time over potential competitors.  Such barriers to entry can come in the form of proprietary technical know-how, patents, capital requirement, market access, regulatory requirements, etc.

 

Market potential

The impact of any legal, regulatory or taxation considerations which may affect business performance

Sale, merger or listing potential within 3 to 4 years

Scope for collaboration

 

The potential network value to our portfolio through leveraging complementary products/services, business linkages, partnerships, and management resources and expertise