The Investment Process

There are over 2,500 Mutual Funds to chose from covering every major market and investment instrument in the world. We have a clearly defined investment process designed to seek out the most appropriate funds.

The LHFM Investment process is divided into two main areas. We look at the past performance of each fund and each fund manager. This is called the 'quantitative process'. Second we look at the experience and management skills of the fund manager. This is called the 'qualitative process'. In our opinion neither is superior to the other but together they enable us to define and reduce the number of suitable funds to a manageable number.

Quantitative analysis involves the study of only what information is available in numerical form, price history, volatility and other forms of financial data. This will enable the analyst to arrive at a decision that is based on the probability of a particular fund performing in a particular way in the future. Qualitative analysis on the other hand involves the study of those areas that cannot be summed up by numbers, but must be made by impressions or intuition. For example, does the fund manager have enough or relevant experience, do they have a sound process for making their investment decisions or does he seem to be easily satisfied with any story he is told.

We place great emphasis on analysing and fully understanding all of the funds that we invest in. We do this by in depth research that involves one to one meetings with fund managers based both in the UK and overseas as well as a full analysis of the funds quantitative history.

A highly disciplined approach to asset allocation and fund selection is employed in order to try and protect value and achieve optimum performance over the longer term.