Process of high value stock investing

The skills of our portfolio managers are supported by well-organized investment process, which serves as the basis for successful risk management and guarantees the clarity, coherence and continuity of investment decisions.

The process of value stock investing in stock market is closely connected with the risk of partial budget loss or lack of income. By purchasing securities the investor takes on certain risks that the issuer may come upon along with the risks of malicious changes of situation in the market, macroeconomic risks, which depend on global tendencies in a certain country and in the whole world, the state of affairs in the monetary and credit sphere, etc. There exists a direct relation between the profitability and the riskiness of the investment. Thus, on the very first stage of choosing an appropriate investment product, personal finance managers along with the specialists of investment team help the clients to define the optimal balance of profitability and market riskiness. According to that relation, a perfect investment strategy complying with the individual preferences of the client is offered to him or her.

The next step is the creation of the client’s investment portfolio. At this stage we define the exact proportion of various tools included in the portfolio according to the strategy chosen by the client and the analysis of current situation in the market. The main criterion defining the contents of the portfolio is the fundamental analysis of the company’s activity that lets us forecast the future changes of financial indices, comparative analysis of the issuer’s price and solvency in relation to other companies operating in Russian and other developing value stock investing markets. In order to ensure the establishment of a really full image, we resort to the help of various methods of collecting info about the issuers: along with searching for it in mass media sources and analyzing the researches carried out by major investment banks we visit the companies and meet the representatives of companies’ management in person, etc.

The creation of the portfolio is a very important, though not the last, step. Our managers carry out regular monitoring of investment assets – and correct the contents of the portfolio in accordance to the changes of market conditions and any newly acquired information about the issuers. Every single client gets regular reports concerning the condition of his or her own investment portfolio for investing.