Philosophy
PORTFOLIO
Morood believes that a sustainable client portfolio requires achieving long term risk adjusted returns on a consistent basis.
Our broader portfolio management perspective ensures that we maintain a balance between the three Pillars of Portfolio Management: portfolio objectives, asset allocation, and market conditions. A holistic view of these Pillars enables us to hold steady during different market cycles and continuously meet our clients’ objectives.
Given that portfolio objectives are defined by client requirements and market conditions are independent, we focus our attention on the only Pillar within our control i.e. asset allocation. Our expertise lies in the successful development and implementation of the investment policy statement which is the backbone of our approach to asset allocation. We spend considerable effort on managing the income, growth and liquidity profile of our asset allocations to deliver the returns our clients need consistently.
Investment
Based on sound economic, fundamental and technical analysis, the backbone of our investment thesis is a constant search for value wherever we invest. Value-investing provides a margin of safety that has proven to be crucial during market cycles. It enables us to look beyond and benefit from short-term market volatility while staying focused on the main portfolio objectives.
Risk
We take a practical approach to risk management by considering various historical / prospective downside scenarios and their potential effects on asset classes. Â This approach helps protect our portfolios from market noise and ensures that we consistently meet short and long-term portfolio objectives.
Strategies
We have developed proprietary strategies in multiple asset classes, supported by strong in-house research, that are consistent with our investment philosophy. These strategies are continuously monitored and enhanced to adapt to different market conditions and asset class cycles.
Capital Markets
Our fixed income strategy covers developed and emerging markets across the investment grade and high yield spectrum. We follow an active buy and hold approach focused on generating consistent income and maintaining principal protection.
Our equities strategy focuses on mid and large cap companies in developed markets. We follow an active investing approach and take short to medium term leveraged exposure to fundamentally strong companies with the goal of consistently generating above average yield.
Commercial Real Estate
Our commercial real estate strategy focuses on taking direct exposure to income generating commercial properties in the US, Europe, the UK and Saudi Arabia. We target assets that have a conservative profile and are able to yield consistent income over the long-term. We aim to add value to each investment by active asset and investment management.
Alternative Investments
Our strategy in the alternative investments space covers both real estate and private equity and is focused on capital growth. We take a hands-on approach by implementing strategic, financial, governance and operational efficiencies in order to minimize the risks associated with this asset class.
In real estate, we target commercial and residential development projects that go through a stringent selection process, keeping in mind current and expected market trends as well as a clear business plan to achieve the required exit within budget.
In private equity, we focus on operationally profitable small to medium sized companies that have a clear business model and strategy with further growth potential.