Where
BlueCAPS fit - We believe this portfolio could
act as a very good alternative to a managed fund which
invests in the top 200 stocks. We have become quite
concerned that the majority of managed share funds have
become ‘index huggers’, compelled to buy/own
inappropriate businesses just because they are in the
relevant index. We believe that you cannot help beating
the index, simply through sifting out the poor investments
that are in the index.
BlueCAPS
gives the investor all the advantages of owning stocks
individually - cost, tax efficiency and yield - while
aiming to outperform the share index over the long term.
BlueCAPS are designed to be bought and held. We are
not planning to actively trade our BlueCAPS however
we may from time to time make changes and clients should
not assume that the current stocks will always remain
in our portfolio.
Bluepoint
places a strong emphasis on portfolio diversification
in stock selection and seeks to select stocks from a
diverse range of major industry groups. Proper portfolio
diversification ensures the majority of stock-specific
risk is eliminated.
Portfolio
stability and longevity are key considerations. Bluepoint
aims to keep portfolio changes to a minimum (approximately
25% pa turnover). |
