Alliance Strata Management’s Absolute Return strategy aims to provide first rate, risk adjusted returns through the management of a focused investment portfolio of carefully selected securities.
We utilize a methodical approach to the analysis and valuation of securities in order to identify those opportunities that have been undervalued by the marketplace. The fundamental characteristics of the strategy include a focused portfolio, a stringent priority afforded to value and an in depth analysis of the fundamentals of the investment opportunity.
When analyzing the intrinsic value of a potential investment opportunity, Alliance Strata Management carries out analysis on the company’s fundamentals, including an analysis of their underlying industry, their financial statements and of their cash flows. Valuations are predominantly determined from these main factors, along with a number of other selected methods of valuation, with the long term analysis of cash flows being the primary indicator of an opportunities value. The structural complexity of large corporations, or particular corporate actions, can result in opportunities where subsidiaries business units or minor positions in companies can present valuation discrepancies that Alliance Strata Management attempt to identify and capitalize on.