Focus on Deeply Mispriced Securities

Our investment philosophy is based on finding deeply undervalued securities in global equities and derivatives markets that have been overlooked by the majority of the investment community.

Generally these securities will be mispriced due to short term business problems, misconceptions or as a result of liquidity constraints which make larger sophisticated players uninterested.

We never purchase securities just because there part of an index and our strategy allows us to invest both long and short which gives us the ability to make positive returns in both up and down markets. We also have the flexibility to move into cash and utilise derivatives to reduce risk or increase exposure, depending on the prevailing economic environment.

 

Adapt to Market Conditions

At BlackPearl Capital partners our aim is to adapt to existing market conditions and to be flexible in the way we structure portfolios. If securities in general are trading at a large discount to estimated intrinsic value we may significantly increase our long exposure. Alternatively if we view industrial stocks as overvalued we may short the names in the sector we like least.

Additionally we prefer to hold fewer positions in our portfolio in order to own our best ideas in size. Hence our portfolio will generally be highly concentrated in a small number of investments which we perceive to have the best risk-reward characteristics.

 

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