Overview
We build a diversified portfolio of around 30 - 70 small cap shares. It is a rigorous and thorough process - ensuring robust valuations.

Identify opportunities
We follow a strict regime to find investment opportunities.  By reviewing a broad universe of companies with a rigorous identification process, we are able to uncover hidden opportunities.

There are four primary areas of analysis;

1. management and strategy,
2. the key drivers of each company,
3. industry structure, and
4. catalyst for change.

Company interviews represent the primary source of internal research. As such, Kinetic undertake a large number of company visits and engagements with company management.

Portfolio construction
The weight of each stock is determined by considering;

1. fundamental research;
2. risk/return trade off;
3. the investment's liquidity; and
4. the market capitalisation of the company.

Risk management
We employ a comprehensive approach to risk management.

Risk management, applied at a stock level, operates around the risk/return principle. That is, the expectation that the portfolio is to be rewarded for the proportion of risk taken in the portfolio.