What we do
Sonevin's core principles consist of three components. This approach aims to provide a degree of diversification, lower concentration risk and more stable returns. We also have a number of investment restrictions and risk control parameters, including concentration limits for individual stocks and sector exposures.
Long-Term Income & Capital Growth Focus: This component seeks to identify companies with a strong or improving return on equity, quality management and attractive valuation. The focus is on those companies that are viewed to be undervalued by the market and may undergo a major fundamental rating change.
Specific Investments & Special Situations: Throughout the investment cycle, there numerous opportunities that will present themselves (e.g. distressed securities, leveraged buyouts, debt restructuring) and taking a concentrated investment in these opportunities could substantially add to the portfolio's return on investments. This component allows Sonevin to be nimble and make relevant changes to our investment holdings.
Preferred Stocks & Convertible Securities: Sonevin may also invest in equity equivalents securities such as preferred stocks or convertible securities. Preferred stocks have a set dividend rate and rank ahead of common stocks and behind debt securities.