Long-term investment horizon
We invest money using a long-term investment horizon and accept short term volatility as long as our companies' fundamentals remain intact. We typically hold our long positions 3-5 years and our short positions 1-3 years, seeking to derive a timing advantage versus other managers with shorter term constraints.
Fundamental investment process focused on
quality growth / structurally declining companies
We use a bottom-up fundamental approach focusing primarily on the long side on quality companies with superior growth prospects and on the short side on companies facing structural decline. Alongside these investments, we also take positions in companies with cyclical, mean-reverting characteristics. We only select the opportunities that present the right risk reward based on the discrepancy between the price we pay and what we think the company is worth.
A measured approach to risk
At Parus we seek to avoid hidden risk: we use plain vanilla instruments and tend to avoid complex structures. We look to invest in highly liquid companies and use diversification as a way to mitigate risk. We also adapt the overall risk profile of the fund based on the set of opportunities that we find in the market.