An investment in knowledge pays the best interest

~Benjamin Franklin

Investment Approach

Click here for the Tenets of Sarsi’s Investment Strategy

Client Requirements

Our first step is to understand the client, her/his requirements and risk-return profile. Great investors say they don’t spend too much time thinking about what the markets will do next. They think more about what they will do in response to a particular market action. That profound statement shapes our investment approach. We know from experience that portfolios not only be constructed with the best products, but must also be based on a philosophy that is suitable and tailored to the client’s need.

Investment Selection

We select best-in-class managers or investment products for a particular asset class or strategy. Depending on the client circumstances, we utilize both traditional (For eg. equities and fixed Income and alternative (For eg. hedge funds, private equity) investments. We analyze investments using extensive qualitative and quantitative methods and pay close attention to fee structures, liquidity profiles and tax efficiency. We believe fees charged by managers should reflect the quality and complexity of the solution provided by them. Our in house research is complemented with research from outside asset management firms, investment managers and investment outsourcing firms.

Portfolio Construction

Our approach is to create a robust portfolio that is suited to client objectives and requirements. The basis of our Investment Philosophy is that underneath all the confusion and chaos of the financial markets is a medium that compensates human enterprise. This drives our strategic asset allocation which is based on long term expectations of asset class returns and their inter-relationships.

Over time, we make tactical changes to the allocation when we feel that certain asset classes are available at attractive prices. We continually fine tune the portfolios based on new information either about the client or the investment landscape, however portfolio turnover is kept as low as possible in order to minimize transaction costs and tax impact.

We firmly believe in the power of compounding, and the adage- “Take care of the downside and the upside will take care of itself”. Risk management principles play an important role in both manager selection and portfolio construction.

Continual Improvement

Peter Drucker said: “Knowledge has to be improved, challenged, and increased constantly, or it vanishes”. We agree. Our research process involves keeping abreast of the markets, and working tirelessly to discover new investment products, strategies and managers. Most importantly, we are in continual touch with our clients in order to understand changes in their situation.