First Guardian works closely with investors and businesses alike, that are looking to achieve sustainable growth in the Asia Pacific region in order to enhance and maximise long-term value and wealth creation. We have consistently based our investment decisions on thorough research and sound risk management, assuming a long-term view, focusing on achieving responsible capital growth.
Our mission is to enable our clients to achieve their financial objectives through superior investment returns and solutions. We do this through offering a compact, client-oriented range of responsible, actively-managed investment strategies, all underpinned by our proprietary process. As we are a pure play asset manager, we do not have the distractions of offering other financial services such as banking or insurance. Investing and advising is our sole focus.
First Guardian Capital regularly monitors which investment style or market factor is in play and then embodies the style that is likely to be
rewarded through that particular phase of the stock market cycle. First Guardian Capitalmonitors historical performance through backtesting to
give a perspective on the likely trend during the different phases of the market cycle.
First Guradian Capital’s Multi-Style encompasses eight different styles, thereby giving added perspective to the investment process. We group
styles into eight broad style categories: value, growth, momentum, quality (financial risk), size or neglect, profitability, technical and macro.
The stock selection process is determined by a focus on the macro environment to identify key thematics and trends, an appraisal of company specific drivers (events or catalysts, quality of management), valuation modeling, earnings cycle evaluation and market psychology.
The investment process (Investment Matrix) evaluates each one of these factors and a numerical score (0-10) is generated for each. These inputs are weighted, which backs into a final number (0-10), which is used as a “conviction” level for each idea. If a stock satisfies a minimum threshold to enter the portfolio, the sizing is determined after considering both the conviction (p), the expected return based on the target (E(R)) and other issues such as: liquidity, volatility, correlation with existing portfolio positions and the ability to hedge.
Risk is managed on a position by position basis with the aim of locking in profits on profitable positions, while maintaining participation as much as possible by employing rigid trailing stops and by cutting losses on losing positions. Furthermore, risk at a portfolio level will be cut in the event trades become highly correlated in a way that affects performance negatively.