We invest to achieve a life of financial independence for our clients. One careful investment at a time.
We’re an SFC licensed investment management company based in Hong Kong. Client’s capital is held in a separately managed account opened in their names at a 3rd party financial institution for brokerage and custody.
Our aim is to double the account value in 3-6 years by investing in a few special businesses with small permanent downside risk and large upside potential.
This intended rate of return is higher than long-term stock market and other asset class averages.
We search for investments where the market price is at a large discount to our take-private valuation, where such value is growing and visible catalysts are in play to facilitate the investment thesis.
Separately Managed Accounts
Separately Managed Accounts are opened in the client’s name at a third party broker-custodian. This will be a large, regulated financial institution. Only the client can make deposits and withdrawals in the account. Only GFM can invest the money as per its Investment Management Agreement with the client. The broker independently sends account statements and does fee calculations. Clients have 24/7 visibility into their portfolio and there are no hidden charges of any kind.
Separately Managed Accounts are safer, cheaper, transparent and more tax efficient than investing through funds.
Portfolios managed by Anand are based on performance fee only. We are only compensated when the client’s portfolio appreciates beyond its previous highest value, otherwise not.
Anand invests his own money alongside his clients in the Focus Investing Strategy. Very few investment managers can say the same.
Fees generated by managing client portfolios is GFM’s only source of income. We do not generate any other type of income.
Focused Long/Short Investing
Focus. We concentrate on the best investments that we know of, after repeated search and research. We invest after thoroughly investigating the thesis with real-world evidence over several months. Our typical portfolio will have 8-12 long positions and 15-20 smaller-sized short positions.
Long and short positions. Our long positions are usually event-driven situations or high-quality compounders. Shorts are usually structural decliners or stressed companies. This positioning helps us generate returns in both rising and falling markets.
Value and growth. We seek to buy at a large discount to our estimate of the take-private value of a business, after factoring in its growth potential. We value a business as if we are buying 100% ownership of the company forever with all of our family’s money. Like Buffett said, “price is what you pay, value is what you get”.