Investment Strategy
Panda Capital’s primary objective is to deliver solid investment performance over the medium to long term. This is achieved through three strategies:
• Fundamental analysis, adopting a long term "value" approach to investment
• In-house proprietary technical trading system - Panda Trading for realizing short-term profit from market fluctuations
• Appropriate level of assets under management, to ensure that ability to deliver investment performance over the longer term is not compromised
Investment approaches are a combination of:
• Fundamental investment using valuation methodologies
- Portfolio allocation of 70% or less
- Valuation methodologies include discounted cashflow analysis, dividend discount modeling, comparable trading analysis, precedence transaction analysis and balance sheet strength analysis, focusing on:
a. Value/Growth sectors
b. Value/Growth regions
c. Value/Growth stocks split at between 60/40 and 40/60 dependant upon stage of the prevailing economic cycle
• Income generating stocks
- Portfolio allocation of 15% or less
- Targeting stocks offering superior dividend yield as well as potential capital growth
- Combined valuation analysis include dividend discount modeling and balance sheet strength analysis
• Technical trading based on Panda Trading system
- Portfolio allocation of 15% or less
- Each trading position at 5% or less of the total portfolio
- Less than 3 new positions per trading day
Within the portfolio, various investment periods for individual positions are utilized:
• Long term investment is defined as investment positions that are held for greater than six (6) months
• Medium term investment is defined as trading positions that are entered and closed within six (6) months
• Short term investment is defined as trading positions that are entered and closed within four (4) weeks
For long term fundamental investment, 'value' approach is utilized. We aim to buy shares which we analyzed to be underpriced and expect to grow at rates greater than the market. If the company's potential performance appears strong, the outlook for its industry followed by the overall economy is then assessed. We favour well-managed, good value companies that have significant growth opportunities through their comparative advantage.
Panda Capital capitalises on a number of investment tools including margin lending and contract for difference to participate in substantial equity growth.
Panda Capital has established a regular reporting framework with monthly, quarterly and yearly performance summaries and strategy updates.
• Fundamental analysis, adopting a long term "value" approach to investment
• In-house proprietary technical trading system - Panda Trading for realizing short-term profit from market fluctuations
• Appropriate level of assets under management, to ensure that ability to deliver investment performance over the longer term is not compromised
Investment approaches are a combination of:
• Fundamental investment using valuation methodologies
- Portfolio allocation of 70% or less
- Valuation methodologies include discounted cashflow analysis, dividend discount modeling, comparable trading analysis, precedence transaction analysis and balance sheet strength analysis, focusing on:
a. Value/Growth sectors
b. Value/Growth regions
c. Value/Growth stocks split at between 60/40 and 40/60 dependant upon stage of the prevailing economic cycle
• Income generating stocks
- Portfolio allocation of 15% or less
- Targeting stocks offering superior dividend yield as well as potential capital growth
- Combined valuation analysis include dividend discount modeling and balance sheet strength analysis
• Technical trading based on Panda Trading system
- Portfolio allocation of 15% or less
- Each trading position at 5% or less of the total portfolio
- Less than 3 new positions per trading day
Within the portfolio, various investment periods for individual positions are utilized:
• Long term investment is defined as investment positions that are held for greater than six (6) months
• Medium term investment is defined as trading positions that are entered and closed within six (6) months
• Short term investment is defined as trading positions that are entered and closed within four (4) weeks
For long term fundamental investment, 'value' approach is utilized. We aim to buy shares which we analyzed to be underpriced and expect to grow at rates greater than the market. If the company's potential performance appears strong, the outlook for its industry followed by the overall economy is then assessed. We favour well-managed, good value companies that have significant growth opportunities through their comparative advantage.
Panda Capital capitalises on a number of investment tools including margin lending and contract for difference to participate in substantial equity growth.
Panda Capital has established a regular reporting framework with monthly, quarterly and yearly performance summaries and strategy updates.