PORTFOLIO MANAGEMENT
The starting point of Interneuron’s approach to the management of each Client’s portfolio is the Client’s Investment Objectives. We truly customise our service to each Client.
Interneuron
was born out of the conviction that investment management can best be pursued
in an independent environment free of the relative-return mindset that
characterises the asset management industry today.
The attitude to risk is the defining characteristic of every investment
philosophy. Interneuron defines risk simply as "the risk of loss".
We are preoccupied with risk.
A share
that has declined by 50%, subsequently needs to rise a full 100% to retain
its original value. This example illustrates the soundness of our loss
aversion strategy.
We use the same process to manage our Clients' and our own portfolios.
This means that we sometimes take bold decisions - for example, investing
up to 10% of the portfolio into one share. Bold actions allow us to make
fewer decisions. This improves the quality of each decision.
We often follow our guts - we are, after all, not gutless.
We do not trade shares into and out of the portfolio just to appear busy.
The portfolio is earning the return; our job is simply to enhance that
return.
The Interneuron Freestyle Portfolio was nominated for the Symmetry 2007 Hedge Fund Award in the Trading Category.
Interneuron
has been voted:
- 2nd over one Year and 2nd over the last 3 years in
the Riscura Absolute Return Survey May 2006
- Top Performer over one Year in the Riscura Absolute Return Survey February 2006: 
Category size:
R38.5 billion, Domestic Category: Interneuron - 32.40%
- Top Performer over two Years in the Alexander Forbes
Asset Consultants Absolute Return Survey.
- Top Performer over one Year in the Absolute Return
RisCView Surveys September 2005 Category Size: R27.9
billion
A
good chess player needs to know how the chess pieces move and inter-relate
(fundamental analysis), but also has to anticipate the opponent's next
move (behavioural analysis). Knowledge of how similar positions on the
board have played out in the past (quantitative analysis) further contributes
to better decisions.
Interneuron's investment process is likewise a blend of fundamental, behavioural
and quantitative analysis. Our proprietary fundamental analysis is primarily
focused on understanding the variables that influence the futures of each
economic sector. Our proprietary behavioural analysis interprets how investors
react to the constantly changing fundamental environment. In other words,
we don't play chess by just following our own plans, but also keeping
an eye on the moves of our many collective "opponents".
Our proprietary quantitative analysis interprets the relevance of past
data for the future, and provides further perspective to our decision
making process.
