Today's active investors have high expectations of their fund managers to add value by delivering alpha significantly in excess of the market.
For the skilled and experienced professional investor, high conviction strategies offer the ability to demonstrate value and differentiate themselves from less active peers.
High conviction investors can invest in any companies their research suggests are the best opportunities for outperformance with less reference to a benchmark. They construct portfolios with a greater allocation to a smaller number of stocks in order to deliver the higher potential returns to investors.
By using their individual skills and research, high conviction investors identify and only invest in companies with the greatest return potential.