Discover Our
Sextant Funds

• Company overview
• Our philosophy
• The team
• The organization
• Recruitment

Our Philosophy

Performance objective:

Our single goal is sustained performance with minimum risk. There are very few attractive investment opportunities, therefore we have to look everywhere without taboo (all sectors, all countries, all market caps).

Value – Safety margin – Scope of skills

The investment decisions for the Funds are based exclusively on the intrinsic value of a company. Therefore, our key skill lies in being able to appropriately value a company; that is, understand its business model. We invest with a huge safety margin i.e. when we see a big discrepancy between the intrinsic value of a company and its market value. Stock market fads, sectoral rotation, economic forecasts, and indices are not investment criteria. We may miss some opportunities and “great bargains” along the way, due to our methodology and discipline, but we remain within the scope of our skills.

Concentrated portfolios

The Sextant Fund investments correspond to what we firmly believe in. In an environment where fund managers are exposed to more doubts than certainties, establishing a confident outlook is a challenging exercise. This is why our Funds are focused on a limited number of securities.

Porfolio construction

Sextant Funds are divided into several sub portfolios. Each manager is given the freedom to invest according to his own conviction since the best ideas are rarely consensual.

A long-term investment

Although we feel it is possible to determine the value of some companies (within a limited margin of error), we acknowledge that it is impossible to accurately predict short-term share price movements. If we decide that a company is undervalued on one particular day, we must be willing to accept that it may be even more so on the next. This is why a Sextant investor should have a long-term outlook; the recommended investment horizon for Sextant Funds is at least 5 years.

Risk management

« I’d rather have a lumpy 15% return than a smooth 12%. » - Warren Buffet.

"Volatility is an opportunity not a threat". Traditional measures of risk (tracking error, Sharpe ratio...) measure only how a fund's performance differs from an index (relative risk). In our opinion there are only two risks: investing in a company that we don't know perfectly well and paying more than the intrinsic value of a company for speculative reasons. We are conscious of risks but not opposed to taking calculated ones.

The Sextant newsletters: the best testimony of our investment philosophy

Day after day, we “live” our investment philosophy, and our newsletters bear witness. We write what we do, and we try to do what we write, which is a tough discipline.

Investors' Letters