Trend Following, Catalyst and Valuation are our main investment philosophies.
While considered by some to be mutually exclusive, they are closely connected and tightly integrated in our investment process. We believe successful investment results will be delivered by carefully adhering to all these investment philosophies.
Makes trends your friend. Let your money follow the trend. Cut your losses short and let your profits run.
Is a qualitative approach to investing that covers M&A activities, re-rating, earning surprises, privatizations and so on. Catalysts grab the market’s attention and give rise to new perceptions, possibly echoing signals from trend following.
Besides considering trend following and catalyst factors, we also examine fundamentals of target companies, from business model, cash flow, earnings growth to valuation comparison within their sectors.
A cornerstone of our philosophy is recognizing the importance of properly identifying, evaluating and controlling risks. Risk management is an integral part of JW Capital’s investment process. In line with the capital preservation philosophy, our principle is to allocate risk only where we have a firm conviction that such allocation will be sufficiently rewarded by quality risk-adjusted returns. In essence, our risk management goal is to minimize absolute downside volatility.
JW Capital’s disciplined risk management is implemented through checks and balances between Risk Manager, Chief Investment Officer and Portfolio Managers, who communicate daily with each other to review portfolios and firm-level risks, exposures, concentrations, leverage and counterparties. Most importantly, our seasoned independent Risk Manager, also a Founding Partner, has the power of veto over JW Capital's investment decisions.