Investment Philosophy

We invest only in geographic areas that we know well and have proven expertise in. These are markets in which we have decades of experience and a first-class track record. We operate only where we have a genuine edge.

Our portfolio management process begins purely at the company level, meaning we apply a bottom-up approach. We seek out the best investment opportunities without being constrained by index-imposed country, position or sector limits. We are not macro forecasters.

We place great value on the ground work of portfolio managers. We approach companies thoroughly and with humility. We also meet out-of-favour businesses that attract little investor interest. We always pay close attention to the price paid for a company’s shares. Even the best company can be a poor investment if the price is wrong. At the same time, weak businesses tend to create problems, especially over the long term, which is why we place significant emphasis on the quality of the underlying business.

Our investment philosophy rests on three core pillars:

1. High conviction – high active share and active risk across our funds.
2. Long investment horizon – companies are analysed and owned across cycles.
3. Low portfolio turnover – turnover is kept deliberately low.

All of our funds are non-UCITS funds. This structure allows us to implement our investment philosophy in full — including high-conviction positioning and letting winners run — without structural constraints that limit portfolio management.

Position limits – Our conviction is reflected in a deliberately focused number of holdings. Depending on the strategy, our funds typically hold approximately 15–50 companies. We are therefore not constrained by the 10% maximum position size or the 5/40 diversification rules that apply to UCITS funds. As a result, our funds’ active share relative to commonly used indices is typically well above the industry average, generally ranging from 65% to 100%. In other words, we aim to differ meaningfully from overall market performance and focus on maximizing returns rather than minimizing volatility.

Liquidity – Our funds are open for subscriptions twice a month and for redemptions once a month. This enhances portfolio management efficiency, as subscriptions and redemptions do not force unnecessary trading in markets where liquidity can at times be very limited. In addition, each of our funds has a clearly predefined maximum size, after which it will be soft-closed. This helps us avoid the “bull in a china shop” effect and stay focused on generating market-beating returns rather than simply growing fund size.

Proprius Partners is owned by its portfolio managers and employees, a structure that enables the high-conviction, long-term investing approach at the core of our philosophy while reducing the principal–agent issues and conflicts of interest inherent in the industry.

Our portfolio managers have worked together for many years, in some cases across several asset management firms, and know each other’s thinking well. Decision-making within the portfolio management team is highly efficient and does not run through investment committees. We keep hierarchy and bureaucracy to a minimum.

As an independent firm, Proprius also draws on external resources where appropriate, including equity research, company meetings and trading execution.

In short: we are a specialized boutique asset manager whose structure is designed to enable long-term outperformance.