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Why Turning Point Capital ?
At Turning Point Capital, the team have most of their net worth tied to the fund. This scenario would create the best interest/goals for you (investors). We are prepared to maximize returns while managing risk (capital preservation). In times of negative market environment, we are also exposed to it. We eat our own cooking.
What Is Value Investing ?
Value investing is an investment philosophy that focuses on the fundamentals of a company in an effort to pick stocks that are trading for less than inherent value. In other words, it’s a strategy of looking at characteristics of a company like free cash flow, operational efficiency, and market competition, etc. rather than looking at its current market price and market history.
What Is Our Main Focus ?
~Out-of-favor stocks. Studies have shown that out-of-favour stocks (i.e. trading at low valuations) outperform the market over the long-term. Our focus on out-of-favour stocks gives us a competitive advantage.
~Growth at reasonable price (GARP): Buying companies with outstanding growth at a reasonable price gives us the potential upside.
Market-Cap Selection ?
While we do not restrict ourselves to any market-cap bias, we mix smaller-cap stocks (below US$1 Billion) in our portfolio with other larger companies. Small-cap stocks generally have better growth prospects and upside than large ones as they are ignored and undiscovered. However, smaller companies tend to be more volatile which is the reason why we mix them to achieve a higher return in the long-term with lower overall volatility.
Investment Holding Period ?
We think in years or decades, not by quarterly or weekly. We believe that long-term investing will provide sustainable absolute returns. We do have special situations ideas that could have a time horizon of less than 1 year, however it will be a very small part of our portfolio.
Geographical Concentration ?
We generally invest in the U.S, Japan and Hong Kong markets as we believe they have the highest potential in terms of size, liquidity and growth. However, we do not limit ourselves to these markets when we find attractive value elsewhere.
Which Prime Brokerage and Service Provider ?
We use UBS AG as our prime brokerage for trading, execution. UBS AG is also our custodian bank.
We use Circle Partners and Amicorp. as our fund admin, auditor, corporate legal and compliance.
Performance Fees ?
High-on-High Principle (High-Water-Mark HWM), you only pay fees when you make money.
What Do Investors Receive ?
Investors will be provided the following: Monthly Investor Statement with net asset value (NAV) report, Quarterly Investor Report, Monthly Fund Fact-Sheet Reference. Request of other data is also available.
