Safron's primary investment process utilises the top-down approach, beginning with the monitoring of global trends and macroeconomic developments. This forms the basis for long-term positioning and the allocation of assets to derive consistent and stable returns.
If the investment idea leads to the execution of an equity trade, the team continues to delve deeper into the specific industry to identify the key players in the market — distinguishing market leaders and laggards in order to find the best stock to express the trade idea. We pay cautious attention to risk-reward payoffs and may not carry out the trade if the market has already priced in the idea.
With the recent involvement of central banks, it has become more imperative to be mindful of the major driving forces in the markets that could trigger multi-fold impacts across asset classes. We pay close attention to different asset classes' movements to identify correlated trends and inter-class relationships, and only invest when inter-asset classes move in a coherent direction with supportive relationships.
Regardless of trade execution, we remain vigilant in tracking the markets and our holdings to ensure investments stay aligned with the initial plan. We see risks first before recognising potential profits, so as to stay profitable in the long run.
The framework
Learn how our asset allocation and risk frameworks support every investment decision.
View asset allocation →