The need for change in the industry
P.A.C. CAPITAL’s Investment Philosophy
At P.A.C. Capital, everything we do is evidence-based. History shows that standard approaches to managing multi-asset portfolios will frequently fail to match client expectations on a reasonable time frame of, say, ten years. Our investment professionals have been around long enough to know that the future is uncertain and we don’t own a crystal ball. But we believe that we can enhance our client’s chances of delivering on their return expectations through:
- Focusing on absolute rather than benchmark returns.
- Reserving the right not to invest in any asset just because it is in a ‘benchmark’. We don’t feel the need to stick with the herd.
- Understanding and accepting what we know and don’t know.
- We directly invest in assets that we understand well. We find the best asset managers in the world to invest in those that we know less well.
- Being value aware. We don’t know anyone who is happy to pay too much for a house, car or television. The same should apply to shares, bonds or any other investment.
- Managing downside risk. In our view, the secret to delivering superior compounded returns is through managing the downside rather than the upside.
- Maintaining internal structures and processes that allow us to be nimble when opportunities present.
- Avoiding commercial conflicts. We never take a selling fee for investing client monies. All selling fees are passed through to our clients.
- Keeping investor costs down. Our partner relationships deliver some of the cheapest platform and brokerage fees in the marketplace.