Our Strategy

MAKING MONEY WORK HARDER

The SANEQ ASX Strategy

Fact-based decisions with cool heads and a laser focus.

At SANEQ, we maintain a laser focus on the ASX to ensure we know more. We don’t allow market noise to break this focus. We always take a long-term view, and our approach and protocols are well-considered and fiercely enforced. 

Process consistency is at the heart of what we do and is paramount to our long term investment success. Our priority is the disciplined execution of our strategy.

We trade with our heads, never our hearts. That doesn’t mean we don’t take well-calculated risks. Risk is inherent in investing, and we are carefully balancing risk and rewards all the time. But we only ever accept risks which we can quantify and manage. We have too much respect for what it takes to accumulate capital ever to take the unnecessary risks that others may.

The basis of our investment strategy is the use of trend, momentum and fundamentals to build high conviction portfolios. 

Trend

We identify stocks that are appreciating in value and avoid those that are depreciating in value.

We believe that stocks in motion tend to stay in motion until new information causes expectations to change.

Trends can last longer than expected because new information is frequently trend reinforcing. Fundamentals take time to change.

While investor expectations are being constantly re-calibrated and updated causing prices to drift, especially in those situation with high uncertainty and a diversity of opinion.

Momentum

We identify stocks that have been out-performing peers over the medium term and avoid those that have been under-performing.

We are looking to position our portfolios in alignment with the market by being invested in the strongest performing stocks.

The strongest performing stocks are those that are most likely to be undergoing positive expectation revisions and as a result, generating strong out-performance.

Fundamentals

We compare each stock in our investable universe by valuation, earnings growth, financial strength and earnings quality. We quantify each of these critical metrics by combining several complimentary fundamental data points into an overall score, which we use to rank each stock.

We use these rankings to understand each company’s relative return prospects. We avoid those companies with the most mediocre earnings quality, deteriorating financial strength or weak earnings growth.

Ultimately we seek to create a high conviction portfolio of stocks that are in clear uptrends, showing strong momentum, and have attractive fundamental characteristics.

We’re looking to invest only in those stocks that we believe have the most opportunity for systematic error and therefore the highest probability of outperforming in the future.

Real People. Real Partnerships

At SANEQ we are here for you, our clients. We are independent and free from influence. Our success is tied directly to our client’s success and we like that accountability.

We pride ourselves on always being available and attentive. We choose to maintain a small and carefully curated portfolio of clients as it allows us to offer an unrivaled level of personalized service and attention. We value knowing our clients personally, and them knowing us. We encourage regular contact and communication. We align values, attitude and expectations so that our ships are always pulling in the same direction.

ASX Managed Wealth, Model Portfolios & Knowledge

Dedicated ASX expertise from the desk of Danny Sandler