The Investment Philosophy of 3Κ Investment Partners
We believe that in the long run, we can achieve yields above the average performance of our peers and above the benchmark, with active management.
We apply a "Bottom - Up" approach and we emphasize especially to the fundamentals of the companies in which we invest.
Basically, we buy small pieces of exceptional companies and we participate in their future profitability
We give great attention to the following four criteria:
- the management of the company
- the sector in which it operates
- the ability of the company to generate profit (earning power) and
- the price in which it is traded
We are long-term investors and we are not seeking for «trading». In this context, we believe that our portfolio is a collection of the best-listed Greek companies.
Our conviction in the merit of our investment philosophy is reflected in the fact that portfolio managers, executives and employees of our company invest their personal money in the mutual funds that we manage and distribute.
3K Investment Partners Stewardship Company
3K Investment Partners (3KIP) is an independent asset management company regulated by Hellenic Capital Markets Commission. It provides investment management services to a wide range of clients (both retail and institutional).
3KIP aims to allocate clients’ capital:
a) With integrity
b) Aiming to enhance long term returns
c) Understanding the risks involved
Our investment approach/ belief is that active management can produce superior, after costs, results.
Shareholder meetings are one of the best ways that the voice of the shareholders can be heard.
Our general approach in the General Assemblies that we participate is formed by the following principles:
Principle 1: We are partners to the companies we invest
3KIP has a long term investment horizon. We aim to identify good companies that will grow and flourish as the time passes. We pay special attention to the people who run the company. We want them to have adequate record and treat us as partners with integrity. People and trust are among the basic ingredients to our selection process. Ideally, we want to be partners with people we admire. Therefore, we take notes of the way companies’ leaders behave and the way they see things.
Principle 2: Activism
As we noted in principal 1, we are long term investors and we pick carefully our partners. We do not aim and we avoid entering in any kind of conflict with companies. However, we understand that there could be cases where situations develop differently than before because of a change in the management or for other reasons. In some of those cases we will stand up and protect the interests of our shareholders.
Principle 3: Monitoring and evaluating our holdings
The investment team is monitoring our holdings and the financial results. We have long term investment horizon, however we pay attention to the financial results. We expect, the decisions taken on shareholders’ meetings, to be designed based on the best allocation of capital and presentation of company’s ability to operate and be competitive in the future.
Principle 4: ESG integration
We believe that ESG aspects are rising steadily in the global ecosystem. Although knowledge and perspectives on ESG proposals are still evolving, research indicates that there are positive financial implications of using those criteria in the selection process or making the right voting decisions when these issues are raised at company AGMs in the form of shareholder proposals.
Ideally, we trust that the management of the companies’ that we pick and invest applies the best practices. However, it cannot be the case all the time. We recognise that the shareholder proposal mechanism can be used to pursue objectives that run counter to the company’s best interests. Many times the complex nature of ESG proposals, and the need to make decisions on issues that are often ambiguous, imply that there is no “one-size-fits all” approach. For instance remuneration of the companies’ management. Additionally to that, the Greek Investment Universe of the Greek stocks has been reduced the last few years, hence, we cannot be very strict or else we may end up with a limited number of companies.
We believe a rigorous analytical process should precede voting decisions on these complex and often unfamiliar items. Hence, we have started to dedicate resources and capabilities to voting and stewardship activities. We also see a need to separate high-quality from low-quality proposals in order to protect and enhance shareholder value by supporting resolutions that are in the company’s best long-term interests and voting against those that are not. Failing to collect and analyse information before voting on a shareholder proposal can mean ignoring a material risk or issue and may have negative value implications. We try to understand the roots of those proposals and try to interact with the management or other shareholders contributing to improved proposals.
UCITS DO NOT HAVE GUARANTEED PERFORMANCE AND PAST RETURNS DO NOT ENSURE FUTURE ONES