Why Valor Portfolios

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We provide low cost dynamic investment with enhanced risk management.  

Our mandate is to be flexible and invest in the most rational way in any given market . This saves advisers or active investors from having to anticipate and re-weight portfolios to accommodate for changing conditions. See below for more details.

How Valor can work in your portfolio.

01

Avoid bubbles

Bubbles occur when fundamentals are ignored and enthusiasm takes over. The market becomes temporarily irrational. Our investment style being based on risk adjusted absolute returns requires actual cash flows from the business and filters out irrational enthusiasm. It does mean we will underperform in bubbles however our businesses are the world's best and when rational behavioiur returns, so do their market leading returns. 

03

Absolute return

Our focus is absolute returns and all our investment decisions come back to the margin of safety above the 10 year bond rate. Investors are focused on their absolute return and want the best return for the risk they are will to take. That is our focus too. We invest where the margin of safety supports the risk taken and not invest in assets simply because we have to meet a mandate. 

05

Relative Currency Hedging

We hedge the currency in relation to its long term average of 75 US cents. For investors this means they do not have to choose between a hedged or unhedged option. Our models are hedged when it is appropriate and relatively unhedged when it is not. 

02

Dynamic Investment Style

We use both value and growth investing depending on what is appropriate at the time. We made high profits from value opportunities after the GFC. In the 2021/22 high growth market, we are growth investors. This means that investors don't need to choose between the two styles but still access the benefits of both.

04

Flexible Asset Allocation

Our investment mandate allows us to invest within growth and defensive asset classes where the most logical absolute return opportunities are available according to risk profile. So if international shares are most logical, then we be primarily invested in international equities and light on domestic equities. For the strategic asset allocation investor, this saves having to re-weight for changes in market conditions.  

06

Employee Owned

The founder of Valor Asset Management, Rob Shears, has been investing for Valor for 15 years and has his superannuation is in the models. Other employees involved in investment selection are also shareholders which provides investors with confidence that their interests are aligned.

To find out more about our risk management processes, please click here or go to our Safety First page above.