Advice Invest is an agile investment fund with a broad mandate to invest where the most attractive opportunities arise. In other words, we invest opportunistically where value can be found in the market. We focus on equities, but our broad mandate allows us to invest in all types of listed securities.
We are looking for solid companies, with a lasting competitive advantage, which can be purchased at or below fair value. The competitive advantage can include long-term customer contracts, strong brand value, a natural monopoly, intellectual property rights or a regulated monopoly such as pharmaceuticals or energy supply. Once an attractive company is identified, the valuation begins. The company will only be included in the portfolio if it meets both our requirements for the company’s quality and can be purchased at or below fair value. This is how we ensure that we as investors take a full part in the company’s future value creation.
Our opportunistic approach results in an investment fund where the allocation to sectors, geographies and types of securities changes over time. For example, our sector allocation changed markedly in 2019, where we found several undervalued healthcare companies and allocated accordingly. The result at portfolio level was a shift from underweight to overweight in the healthcare sector.
At Advice Capital, we believe that alignment of financial interests between manager and investor is an important cornerstone of investment management. Therefore, our portfolio managers are personally invested in the companies that are managed, so the manager achieves the same profit and loss as the outside investor. In addition, our compensation as a manager is also performance-dependent, which further intertwines the financial interests.