Special Operations Portfolio

Special Operations Portfolio

What is it for? 

The primary objective of the portfolio is to select companies to capitalise on unique high potential opportunities that arrive unexpectedly in the financial markets. This is achieved by identifying companies where specific market communication suggests the share price does not fully reflect the future potential of the company. The goal of this portfolio is to provide investors with a diversified source of capital appreciation. The Special Operations Portfolio may be suitable for investors who seek higher returns but accept a higher level of risk associated with focused portfolios.

What does it do? 

This portfolio invests in specific company opportunities and may significantly deviate from any equity benchmarks. The portfolio typically targets in 25-30 companies by applying a number of proven investment techniques to identify unique opportunities. The portfolio is actively managed by the MVAM in-house portfolio management group.

What you need to know...

Why Mole Valley Asset Management? 

  • Expertise in equity-based investment.
  • The size of MVAM means that we can invest in the best opportunities regardless of their size, unlike larger investment houses.
  • Fees are fair and transparent, and we align our rewards to the success of our product.

Positives

  • Potential for strong returns.
  • Focused portfolio ensures if a share disappoints the manager can sell it.
  • Money back usually within a week of receiving a redemption request.

Risks  

  • The biggest potential downside is that your capital is not guaranteed.
  • The portfolio is concentrated, holding 25-30 companies, and therefore has additional company-specific risk.
  • This portfolio is entirely invested in the equity market. Individual stocks invested in are higher risk than average equity investments hence we classify portfolio as ‘adventurous’.

We say...

We would not advocate putting your entire wealth in such a portfolio. While the rewards can be high so can the risks. However, if this sort of investment matches your risk profile, then the Special Operations Portfolio with MVAM is a vehicle that can make a difference to you and your dependents’ future wealth.

This portfolio is considered Adventurous risk and is suitable if you can withstand sharp fluctuations in the value of your investments in the short term.

You should not buy this portfolio if:

  1. Your objective is to preserve capital.
  2. You cannot tolerate periods where your portfolio is at risk of loss.
  3. You are looking to perform in-line or close to a benchmark.

Frequently asked questions...

How many companies are in the portfolio?

We believe in concentrated portfolios. At any one time, there will be a maximum of 30 companies. This ensures that each position contributes towards the performance of the portfolio and the majority of the risk is a company-specific risk.

How do you select the companies?

We have a disciplined investment approach that uses a number of techniques that have proven over time to identify investment opportunities. For example, authorised insider buying by company directors is considered a strong indication that management is supportive of future expectations.

Do you invest in different industries?

Yes, we strongly believe in diversification of industry-specific risk and invest across all industries. To avoid putting all our eggs in one basket we ensure that we invest across many different industries. This is controlled and monitored at the portfolio construction level.

Why not just use one methodology to buy?

We are strong believers in diversification of ideas. We have concentrated portfolios but use a variety of investment techniques to build our portfolios. Not all the investment techniques work all of the time, therefore diversification in our selection process is important.

Warning

The value of your investment in this portfolio and the income from it may go down as well as up and you may not get back what you invested.