Quest Investment Process
Quest aims to deliver above average absolute returns over time. Returns are generated by a concentrated, long only, high conviction portfolio with a target holding of 25 stocks.
Quest strongly favours businesses that can sustain above average returns on capital employed. We are looking to identify pricing anomalies in the market and seek out businesses whose market value is below the value we attribute to that business. Quest clients are expected to accumulate wealth by being invested in stocks prior to the market recognising their intrinsic quality.
The portfolio is constructed with approximately equal portfolio weight in stocks that have the potential to generate significant returns over time. We do not invest on the basis of weight relative to any index.
A Quest portfolio will be more volatile than the average Australian equity fund with the potential to deliver larger absolute gains or losses.
There are three stages in the Quest investment process: