Methodology

Trading a view...Fundamental analysis, technical analysis, Research and news.
Rather than taking one or two methods of analysis when selecting stocks, we take into account all available information, form a view, and trade that view. We seek to identify opportunities in the market place using this methodology and trade in line with that view until new information comes to light which causes us to adjust that view.

Using fundamental, macro and micro economics, and technical analysis combined with all available research as well as news enables us to build a well rounded view before taking a position in the market.

Active, high conviction managed share investment
The actively managed nature of the accounts means our primary investment position is cash. Your money is held in a high yield CMA until it is allocated to a trade; once that trade is completed the money is deposited back into your CMA where it continues to earn interest until the next trade is placed. At any one time you could expect to be invested between 0% and 100% depending on the market at the time.

How we generate outperformance
With the recent market volatility we have been holding a large proportion (approx 50%) in cash, which has helped us to significantly outperform the index where other more heavily invested managed funds who are mandated to hold a certain percentage of index weighted stocks have suffered in line with the index. By constantly adjusting how much cash we deploy and how much we hold, we are able to take positions in the sectors of the market that are moving then move back to cash before finding the next sector thats moving.

Where do we invest?
While our mandate is fairly broad and covers the majority of stocks in the ASX200 index, approximatley 90% of all investments are made within the ASX top 20 stocks. There are a number of reasons for this, pricipally all stocks are well researched by all of the big brokerage firms so there is never any shortage of reading material for us. Stocks in the ASX top 20 are also highly liquid allowing us to move switfy in and out of stocks with ease. The timing of our entries (and exits) is another key component of us generating outperformance. We are also able to invest a limited amout of the portfolio in options to enable us to hedge against significant market decline or to take advantage of a fall in the market.

Talk to us today about opening a Managed Account with William Shaw.