Piper Serica Leader Portfolio Strategy

Fund Snapshot

OUR STRATEGY FOR INVESTING

We invest from the top down. Our goal is to invest in businesses that dominate their respective industries and have a widening competitive moat to safeguard that leadership. We first identify industry verticals and sub-verticals that we believe would grow on a secular basis for the next 15-20 years based on the change in demographics, consumption patterns and technology.

The clear leader of the vertical is then identified and subjected to a unique due diligence process based on Michael Porter’s 5 Forces Competitive Edge Model. We evaluate each business based on 35 criteria to see whether it has a distinct advantage over rivals and the capacity to expand more quickly and economically. We rely on primary research for this ranking, and our close connections to suppliers, dealers, distributors, lenders, and other industry participants are quite important.

We actively manage the allocation based on the value range we create for each firm in the portfolio. Our exceptional returns are a result of this dynamic allocation. Another factor contributing to our excellent performance is that our portfolio firms’ core metrics for growth, profitability, and leverage outperform all prominent indexes (individually and on average).

To sum up: We have a highly strict and organised investing procedure. A team, not one person, makes the investment decisions. By putting more emphasis on facts than views, our method reduces the possibility of psychological and emotional biases. We profit from a private network built across sectors to gather primary data.

UNIQUE PRINCIPLES FOR GUIDANCE

Professionalism

In every choice, we uphold a high standard of independence & objectivity. Our fiduciary obligation is to treat every customer with loyalty, wisdom, and care.

Communication

Effective client communication is the most crucial element of our whole investor relations approach.

Incompatible interests

There are no competing products or services here. We exclusively make money from advice and investment management fees.

Integrity

To handle sensitive data and information, we have strict internal procedures. Data about investors is completely protected. While having management meetings, we ensure that no price-sensitive non-public data is exchanged.

Financial Analysis

Every investment selection has a logical premise, thorough due diligence, and thorough analysis. The presentation of investment analysis makes a clear separation between truth and opinion. An investment committee makes investment decisions.

In it to win it

Almost all of our founder’s and his family’s investments in the public markets are held in the same portfolio. Only investing in Piper Serica’s portfolio businesses is encouraged for all our employees.

Unique Feature

Investing in fast-growing sectors and businesses

• The Piper Serica Leader Portfolio aims to invest in natural compounders of earnings that deliver above-average absolute returns with below-average business volatility over a long period, in order to multiply wealth.
• The Piper Serica Leader Portfolio identifies high growth sectors that are gaining momentum as a result of evolving demographics and consumption habits.
• Invest in leaders in these defined sectors that compound earnings over time with limited business uncertainty.