Clime is an absolute return focused, value investing fund manager.
Absolute return means that we are focused on delivering a return to our clients, by selecting a focused portfolio of between 25 and 35 securities, and holding cash where we believe it appropriate. Our goal is to deliver a return, regardless of the performance of the wider stock market.
Long term stock market returns
Whilst our performance is not directly tied to the performance of the wider stock market, it is an important point to note that, the long term fully invested return from the Australian stock market is about 7% to 8%.
A 10% per annum targeted RETURN is above the long term market return. This is what we aim to deliver. It might not be achievable in every year, but over a period of 3 – 5 years, we believe that this is an appropriate target.
The power of compounding
The compounding of returns is powerful and more so on double digit returns;
A 10% return per annum, compounded over 7 years, will very nearly double your money (+95%)
Move to cash
Our investing process gives us the ability to divert to cash when valuations are full. By doing so, and potential avoiding a significant correction, a higher investment return over the long term is expected.
Our application of a value investing approach to investing, using a detailed calculation of Intrinsic value, alerts us to over valuation, either in a specific stock, or in the market as a whole.
At Clime we also employ a macro overlay, to determine market risk and to adjust our required returns. This enables us to take a holistic view on the market and sectors and modify our exposure accordingly.