Vertex One - About V1
Investment Philosophy
Vertex One provides a complete approach to investment management embracing value, growth, and event driven opportunities in equity and fixed income. Our portfolio managers offer a bilateral approach to investing:
- We seek to achieve superior long term performance through investments by identifying catalysts that will create value for shareholders. We seek companies that have low price-to-value metrics, have put themselves up for sale, or where a misvaluation has occurred within the capital structure of the company.
- We buy stocks that are trading at values below two-thirds the price-to-value metrics of their competitors. Firms with low debt, annuity stream-like revenues and high dividends are also favoured.
Our aim is to reduce risk in our portfolios but not necessarily volatility. Volatility in the short term is perceived to be hard on nerves but in the long term will deliver better investment returns. Investment policies suffer from a tendency to equate volatility with risk and an indifference to whether assets are cheap or expensive.
This philosophy for value is pervasive in the firm and extends throughout the portfolios whether it is a bond which our assessment suggests is undervalued or an arbitrage situation (such as a merger) where the risk-return tradeoff is in our favour. The firm utilizes equities (stocks), fixed income (bonds), covered call and put writing, and arbitrage to offer portfolios not only diversified by holdings, but also by strategy, providing total portfolio solutions for our clients.