Investment Philosophy
Building Portfolios Through Discipline and Active Management
At Petrichor, we believe in Quality and the power of long-term investing to achieve your goals. We achieve this by adhering to a core set of principles that emphasize:
Strategy, Discipline, Vigilance
STRATEGY
Foundation for Success: Asset Allocation and Portfolio Construction
The cornerstone of our investment philosophy lies in strategic asset allocation and rigorous portfolio construction. We carefully consider the known and unknown risks to create the ideal mosaic of investments.
Long-Term Perspective & Compounding Power:
We take a long-term view, focusing on the power of compounding returns. By strategically investing and allowing your money to grow over time, we aim to maximize your clients’ wealth potential.
Active Management for Outperformance:
We believe in the value of active management. Our experienced investment team conducts thorough research to identify high-quality companies with strong competitive advantages ("moats") as well as superior portfolio managers. By selecting these traits and actively managing your portfolio, we aim to outperform passive investment strategies over the long term.
Tax-Conscious Investing:
We understand the importance of tax-efficient investing. We strive to minimize the impact of taxes on your returns by utilizing tax-advantaged accounts and strategies whenever possible.
DISCIPLINE
Data-Driven Insights & Fundamental Decisions:
Our investment decisions are rooted in a combination of fundamental analysis and data analytics. Our portfolio decisions are based on a thorough understanding of a company/mutual fund fundamentals, focusing on its long-term potential for sustainable growth and profitability. We complement this information by leveraging data to gain valuable insights into market trends and identify potential investment opportunities.
Combating Behavioral Biases:
We recognize the potential for behavioral biases to affect investment decisions. To mitigate this risk, we establish a clear investment game plan before implementing any new positions. This disciplined approach ensures our decisions are based on objective analysis rather than emotional reactions to market fluctuations.
VIGILANCE
Active Portfolio Monitoring & Risk Management:
We are active portfolio managers, constantly monitoring your investments and rebalancing as needed to maintain your desired asset allocation. Additionally, we take a proactive approach to risk management, identifying potential risks and implementing strategies to minimize their impact on your portfolio.
