Investment Philosophy

How I think about investing

Over the course of my career, I have worked in New York, London and Geneva, travelled three continents to source investments and built businesses focused on advising governments, institutions and private investors on how to improve portfolio performance.

During that time, I observed three types of investment managers: those without talent, those with narrow talent, and those rare few who were broadly talented in creating alpha, managing risk and defending their business from competitors, effectively allowing them to ‘create their own weather’.

In striving to become more like that third type of manager, I came to three conclusions. First, be outcome-oriented and focus on solving specific challenges. Second, be forward-looking. The future is unpredictable, embrace variability. Third, continue to grow through innovation and discovery.

I also observed that most investors, including me, dislike losses more than we enjoy gains. This presents three risks to stock market investing: magnitude of losses, length of time required to recover losses and potential failure of traditional diversifiers to add value. EVP Research seeks to solve for these challenges.

With this in mind, my core philosophy can be summed up as follows: it’s insufficient to merely have a destination in mind, you must also manage the journey in order to get there. I therefore strive for portfolio strength and reliability so I can maintain confidence in performance at all points along the way.

How I Apply It

This philosophy guides my investing principles, which help me focus on: (1) generating alpha across different economic regimes so that results are more consistent, (2) producing them asymmetrically so that I generate more upside than downside, while (3) mitigating the potential for extreme loss.

I believe my approach is distinctive because I rely less on conventional definitions of risk such as ‘standard deviation’. There is very little that is ‘standard’ about stock market returns and I desire plentiful ‘deviation’ as long as it travels in the right direction. For me, asymmetry matters far more.

Therefore, I prefer to focus on upside and downside return potential. My overall process reflects this by establishing specific portfolio roles for each investment and constantly updating my confidence in the ability of each one to deliver value for its intended role.