Our investment philosophy
Opportunities vs Risk
Align Investors with a long-term horizon
The Partners of the firm are heavily invested alongside our clients, with a long-term investment horizon.
We aim to produce superior risk adjusted returns over an equity cycle by typically holding our long positions 3-5 years and our short positions 1-2 years – seeking a duration advantage versus other managers with shorter term constraints.
Fundamental investment process
We use a bottom-up fundamental approach built around three complimentary investment universes: Good Growth, Value Mean Reversion and Balance Sheet Shorts.
The portfolio is primarily constructed through our universe of high-quality businesses with strong barriers to entry that will compound over the long term. We compliment these by buying mean reverting value opportunities and shorting companies with weak balance sheets facing cyclical or structural pressures, when presented with attractive opportunities.
A measured approach to risk
At Parus we seek to avoid hidden risk: we use plain vanilla instruments and 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.
