UNIQUE PROPRIETARY SCORING SYSTEM

Quickly and accurately analysing the now 1,300 names that meet our turnover and coverage criteria (from the original universe of 14.000 in Asia) was the most difficult part of our process. We fully believe in the stringent process and measures that all other investment managers employ when looking at companies, and we wanted to ensure that we follow these no matter which country or sector the stock was in.

The difficult part was to ensure that our process was fully integrated to cover each market and sector without giving misleading information which would lead  to losses in our trading positions. We also had to ensure that the process was able to work for both long and short investment ideas.

What we have managed to achieve is a UNIQUE PROPRIETARY SCORING SYSTEM that.....

• Looks at the entire balance sheet of a company

• Takes a raft of different data points within that balance sheet and creates a 'score' by getting the different elements to INTERACT WITH ONE ANOTHER in NO PARTICULAR ORDER AND WITHOUT RANK

• Creates a five year average historic 'score', a current 'score' and a future 'score' for each company
  

• A 'score' of 1.00 denotes fairvalue
  

• For a Long position, the 'score' mst be below 1.00. If that stock then meets our other criteria and still provides us with at least 20% upside then it moves onto our 'Reverse Active Management' process

• For a Sort position, the 'score' has to be above 1.50. If that stock then meets our other criteria and still provides us with at least 20% downside then it moves onto our 'Reverse Active Management' process

• Provides us with a price target for the stock from the interaction of the above scores.

'Reverse Active Management'