Finles Capital Management aims to provide its clients with realistic expectations of returns, based on as much research and first hand knowledge of targeted investments that we can gather. We believe this is the best way to make sound investment decisions.
Finles employs an investment strategy with the goal of minimizing risk, while maintaining more than adequate liquidity, portfolio efficiency, operational flexibility and the potential for absolute returns – real returns on investment that are not determined relative to market benchmarks.
Finles’ investment team controls the investor’s risk level by keeping Finles fund portfolios diversified across different economies and asset classes with low correlations. Finles’ investment strategy is laid out in the prospectuses of individual funds and reviewed quarterly by the Supervisory Board. Monthly investment committee meetings are conducted with the fund management team to ensure that the stated risk and reward parameters fall within the guidelines of a fund’s prospectus.
Finles utilizes absolute return strategies with risk factors weighted according to prevailing market conditions. Alternative investment vehicles include long/short equity, event-driven, fixed income and arbitrage strategies etc. Finles’ absolute return strategy has played a very important role in managing risk by providing equilibrium during periods of market volatility.
Finles has integrated risk management into the entire investment process. The key areas of focus are:
- Macroeconomic environment: Active asset allocation leading to better risk adjusted returns.
- Portfolio level: Risk management at the portfolio level focuses mainly on the liquidity of the portfolio, the geographical allocation, concentration levels, the market exposure of the absolute return funds and the correlation of the underlying investments. The fund management team uses specialized software programs and models to calculate the market exposure and the correlation of the underlying investments.
- Individual underlying funds: After an investment is made, it is very important to monitor it closely. On average any manager Finles invests in is visited at least once before making the initial investment and on average twice a year once invested. Furthermore, the managers are closely monitored on an ongoing basis and regular comparative analysis is made against their peer group.
The investment management team is comprised of seasoned investment managers some of whom have been working for Finles since 1994. They understand Finles’ investment philosophy and the return on investment expectations of each of the Finles Funds and have grown and evolved with Finles over these past twelve years.
The Supervisory Board consists of senior executives within the investment industry. The Supervisory Board is independent from the company management and has a fiduciary responsibility towards the best interests of the Funds and its investors.