Value Proposition

Cadiz Asset Management’s value proposition is simple

We understand that clients tend to move at the wrong time and so we will manage your investments with a major focus on limiting big drops in the investment value. Fear is the more powerful motivator and we will try to make the investment journey less bumpy by doing rigorous analysis to understand each and every investment we make. We focus on what could happen in a reasonable worst case scenario and seek to only be fully invested in any one company when this scenario is fully reflected in the stock price.

This provides the portfolio with a number of investments where the risk of permanent capital loss is low, as the worst case is already in the price but there is significant upside if things work out less bad than the market expects. This creates a situation that we refer to as asymmetric pay-off, which simply means that we lose a little when we are wrong, but the long term return is excellent when we are right. We have strict limits which ensures adequate diversification at the portfolio level, which ensures that we don’t inadvertently expose our client’s to undue concentration risks. We also believe that better quality businesses have more levers to pull to fix near term problems and have better prospects of long term capital appreciation, especially when acquired at an attractive price. One of the easiest ways to lose capital is to invest in a business that has too much debt and is at risk of bankruptcy, so we steer clear of these high risk investments.

Our aim is to enrich our clients’ lives through long-term investment excellence by investing your capital astutely, with an intense focus on risk management which ideally will lead to smaller losses at the portfolio level and provides sufficient comfort for our clients to stick with us while still generating good investment returns over the long term. We are not attempting to be the highest returning fund manager over any time period but we are trying to be the best at growing clients wealth over the long term while lowering the quantum and frequency of declines in the investment value.