Our Investment Process

In a world where interest rates are approaching 0%, portfolios composed exclusively of equities and bonds will no longer meet most investors’ return expectations. For this reason, we build our portfolios using different assets in addition to equities and bonds. Enter our alternative investments.

Alternative Investments

Alternative investments are a key pillar in our portfolios’ construction for these reasons:

  • There is a low correlation of alternatives with public equities and public fixed income.
  • They generate a stable income.
  • They have a risk profile that, in aggregate, sits between equities and fixed income.
  • Their return profile tends to be very stable.

How we select them

The investment’s expected return should be explained by a sustainable and clear economic rationale. We avoid investments based on speculation and chance, such as highly leveraged strategies or purely “skill-based” strategies.

Their strategy should allow the investor to redeem their investments in a reasonable amount of time. We avoid strategies that do not offer a clear exit opportunity or time frame for redemption.

We invest in strategies that have a track record of stable performance month over month and year over year.

In alternative investments, we assess the level of risk based on our definition: the risk of a permanent loss of capital.This is different from value variability (volatility) as a result of market fluctuations.

We favour investments where it’s possible to project the future expected returns with a reasonable level of certainty. This explains why an economic rationale for the investment is essential.

We make sure the investments have proper legal documentation where the interests of investors are protected. The analysis of legal documents is paramount to avoid surprises and to establish expectations towards an investment.

Equity

We focus on companies that have

Companies that produce high margins and high profitability levels have historically generated a greater return on shareholder equity, translating into significant value creation over time.

We like companies that are prudent in using leverage and have a solid balance sheet. They have the necessary financial flexibility to invest when opportunities arise and to remain resilient in the face of challenges.

We invest in strategies that have a track record of stable performance month over month and year over year.

Companies that consistently perform and have durable growth have a competitive advantage that leads to superior risk-adjusted returns. For this reason, we tend to avoid cyclical sectors and favour business models that provide visibility into future revenues.

We aim to identify management teams that make sound strategic decisions with an eye on the future. Our focus is on sustainable growth in revenues and the potential for increased profit margins.

Fixed Income

We carefully select our defensive positions based on

We favour quality issuers of fixed income to give the portfolio stability, especially in times of market stress.

Fixed income should be the primary source of liquidity in the portfolio. This means that we can quickly sell fixed income without a negative impact on price.

Core, high-quality fixed income is not highly correlated to equity and alternative investments. Including them in your portfolio is expected to reduce the overall volatility profile of your investments.

Fixed income provides a reliable and stable income.

Our award-winning TWM Investment Committee

Our Investment Committee meets weekly and brings together highly experienced Portfolio Managers (CIM®) and Chartered Financial Analysts (CFA®). We have access to the best research sources worldwide. Following our disciplined and proven process, we evaluate and analyze the data to fuel all our decisions.

Our fees are based on a percentage of the assets we manage for you

They are very competitive, easy to understand and clear. We also provide you with a full report at the end of each year. Plus, our fees are tax-deductible in non-registered accounts. Since they are entirely tied to how we make your investments grow, this assures our constant motivation to produce superior returns. Your success is our success.

If you want to know more, we will be happy to answer your questions.

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Invest with TWM Group

Our clients and their families typically have a net worth of $2M or more. If you have an amount under the minimum, we still invite you to get in touch to discuss your options.