Why Turning Point Capital ?
At Turning Point Capital, the managing partners and portfolio managers (PMs) 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.
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 like to mix them to achieve a higher return in the long-term.
Investment Holding Period ?
We think in years or decade, not by quarterly or weekly. We believe that long-term investing will provide sustainable absolute returns. We do have speculative alpha 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 follow/invest in U.S 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 value somewhere else.
Which Prime Brokerage and Service Provider ?
We use UBS AG as our prime brokerage for trading, execution.
We use Circle Partners and Amicorp. as our fund admin and auditor.
Performance Fees ?
High-on-High Principle, you only pay fees when we perform.
What Do Investors Receive ?
Investors will be provided the following: Monthly net asset value (NAV) report, Quarterly investor letter, Memorandum document, fund fact-sheet and portfolio monitoring with special user ID and password provided. Request of other data is also available.