Holistic.

Our approach is holistic. We take a broader perspective. Never seeing events in isolation, always as a piece in a large jigsaw puzzle.

Most developments in financial markets and economies are cyclical. Some cycles are very long, some are short. Where we are in these cycles and how they interact is key to understanding investment returns.

Essentialism.

We break investment markets down to the few core drivers that have the most impact.

In money markets, the monetary cycle - an interaction of growth, inflation and policy - is key to market performance most of the time. To understand what drives the big monetary and political decisions it doesn't work to listen what central bankers and politicians say, but what their underlying interests are.

Essentialism for us also means finding those environmental solutions that have greatest impact and work in the long run with least sacrifice of return.

Downside protection.

Monetary and political interests tend to drive market performance, until we get into bubble territory. Then markets are driven by risk and we can see large drawdowns in any investment category. In the long run, avoiding sharp draw downs in your portfolio is key to a sustainable performance. This is due to the compounding of returns, a mathematical reality that means if your portfolio declines 50% it needs to rise by 100% to get you back to where you were before.

This is why we are always on the lookout for those places where risks are building, be it high debt levels, or extreme valuations. And we try to avoid those areas. Often, in hindsight, we get out of a market too early, but this pays in the long run due to the compounding of returns.