Investment Process

Asset allocation methodology

Mason Baxter's Investment Process is dictated by a commitment to the pursuit of a diligent, rules-based strategic asset allocation methodology.

Our process seeks to identify opportunities that present clients with attractive, risk-adjusted investment returns under consideration of each client's individual risk profile.

Pre-empting economic change

Our investment specialists focus on the observation of fundamental drivers throughout the economy to identify market forces likely to influence directional change.

With this approach we are ideally positioned to capitalize on value based opportunities ahead of the herd, whilst defending against emerging threats before they erode value.

Four-stage investment process

The Mason Baxter Investment Process is a four-stage process that ensures portfolios are constructed with absolute diligence.

Stage 1: Quantitative Screening
The analytical team scans a number of global market places in anticipation of locating value based assets that demonstrate attributes that conform to our philosophy.

While assessing the feasibility of equity investments, our analysis embarks on a dedicated focus into the engaging potential and cash flow through participating industry dynamics.

At this stage we dismiss companies that display reliance on capital leverage, capital intense operations and minimal returns on equity.

Stage 2: Qualitative Analysis
A deeper assessment into the quality of a company focuses on historical performance and future potential.

Emphasis is placed on developing an in-depth understanding of how a business operates in respect to the management of debt and of management's ability to efficiently execute strategy.

Stage 3: Evaluation
Assets under the evaluation process are only selected if they display strong evidence that its price is set at a significant discount to its future potential.

With this in mind the analytical team discards assets that do not present adequate value in expectation of future earnings, cash flows or net asset value.

Stage 4: Portfolio Design
In pursuit of delivering absolute returns we take the data assembled from the previous stages of our investment process to develop portfolios through a bottom-up asset allocation process.

No two portfolios under our management contain duplicate asset arrangements. To align with client objectives, portfolios are constructed to drive performance on an absolute basis under the safeguard of adequate diversification.

Portfolios are also constructed with flexibility in mind. We believe that this enables assets to participate in a greater number of issues, which encourages the benefits of diversification whilst incorporating liquidity to facilitate positive reactions during periods of market change.

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