Equities

We believe that the market is driven by investor sentiment (Fear and Greed) in the short-term, which leads to stock prices differing materially from the underlying value of a business. With a long-term focus and acting like business owners our investment approach is to take advantage of short-term market pessimism to buy predominantly good businesses with capable management and low financial risk that can compound their earnings. As their earnings compound over time, the share price is likely to reflect the underlying business value.

Cadiz has a rigorous process which is opportunities driven. Each investment selected must satisfy our investment criteria before being included in the funds. We build our portfolios using a bottom-up selection process and are not benchmark cognizant. This leads to portfolios which are very different from their benchmarks. Risk management is central to our process and we ensure the funds are well diversified across asset classes, across sectors and across different macro exposures. As a further check, we also ensure the funds’ exposures don’t deviate too aggressively from the exposures of their internal strategic benchmarks. We believe, we are more likely to generate alpha consistently from stock selection rather than sector, macro driver or asset class bets.

By applying a disciplined process, which is aligned to our investment philosophy, we expect to compound wealth for our client’s overtime and outperform the various benchmarks and mandates set for the funds.