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.

Alongside our long term analytical view, Alliance Strata Management’s Absolute Return strategy also looks to identify short selling opportunities, where we seek out and identify those securities that we judge to be temporarily overvalued relative to our fundamental analysis of their value. We typically seek out short positions independent of our long term strategies, that we believe will deliver positive returns over the long term, however both direct and indirect relationships with our long positions will be a factor in some of our short positions.

The Absolute Return strategy also consists of fundamentals based macro element, with the goal being to deliver greater risk adjusted returns through the efficient allocation of capital to the global markets at the points where the trade-off between risk and reward presents the greatest rewards. Our strategy for achieving this is to combine our meticulous value based selection process with our comprehensive analysis of the prevailing macroeconomic trends.

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