INVESTMENT

Instead of traditional strategies like ‘Growth’ or ‘Value’, Kingdom Investment Managers uses a thematic investment strategy based upon Three Pillars of Investment and the Fundamental Price Identity.

This approach works more consistently across market and economic cycles.

Three Pillars

of Investment at Kingdom

  • 1

    Discover the

    Trends & Cycles

    Investment Themes are strategically identified through the rigorous analysis of trends and cycles. They are any macro phenomenon that affect the profitability of some companies but not others. Themes can be Economic, Social, Political, Demographic or Industry Specific in nature and are monitored through indicators.

  • 2

    Identify the

    Winners & Losers

    Our positions are basically stocks which are proxies of themes we have selected. In some cases we will also hedge using anti-proxies to achieve market neutral positions.

  • 3

    Perform the

    Vetting & Betting

    We pick the most appropriate company from sub-sets of proxies for investment. Besides maximum sensitivity to the indicator, companies must also be vetted for factors such as over-leverage, poor management or corporate governance.

  • Integrating

    the Three Pillars

The Fundamental Price Identity

Estimates of future results as well as historical accounts are examined in great detail before a bet is committed. In the stock vetting process we utilize our proprietary concept: the Fundamental Price Identity.

Three Universal Factors are commonly used to value shares The PE is the short term price factor, ROE is the medium term price factor and NAV per share is the long term price factor.

What is less known is the 3 Universal Factors multiplied together is always the share price, and similarly the product of the future values of the same 3 factors is the future share price.