Yellow Capital’s principle investment proposition focuses on there being ‘a margin of safety’ before we invest, as we are just as concerned with the return of our capital as we are about the return on our capital. Therefore we only invest in securities if we are satisfied that our capital will be returned to us and by so doing avoiding a permanent loss of capital. Investment is at times extremely boring, uneventful and filled with anxiety. With our proven investment philosophy, our time is spent researching our investments rather than trying to forecast the impossible.

A famous investment maxim says: “If you want to have a better performance than the crowd, you must do things differently from the crowd.” – J. TEMPLETON.

Yellow Capital belongs to a group of investment advisors who challenge modern day investing and the academic syllabus that is promoted by the industry. Therefore we have a contrarian view to most City managers. Yellow Capital will not chase the latest short term performance or become like many of the larger institutional managers who follow the herd. We base our research on real companies and opportunities and treat our investment operation as a business, which means that we take a business-like approach to determining the risks rather than a theoreticalscientific approach. Our dedication, passion and belief in our investment style are confirmed by our statement of integrity and transparency, and this is confirmed by our actions, for we invest our money in the same way as we invest our clients’ money. Where possible we will invest our money, personal and corporate, alongside your money. This brings about a total alignment of interests and reduces any conflicts.

 

Yellow Capital provides a high-level unbiased advisory investment service. This means that we keep you informed as to the changes and/or recommendations that we feel are necessary to bring to your portfolio. We will explain the reason(s) for the change and obtain both your consent and authority (in writing) before we make any changes. Yellow Capital through its professional partnerships does offer the same portfolios to our clients on a discretionary basis. Whichever format you prefer to use, Yellow Capital is happy to provide you with the correct service and continued advice, information and feedback regarding your investment portfolio. Yellow Capital will provide you with at least a bi-annual portfolio statement of your investments which will include the return in both monetary and percentage terms. We will also include the performance of the portfolio against the selected benchmark that it is measured against.

 

Yellow Capital uses modern technology and services to screen the global universe of listed companies. Screening the indexes for value characteristics eliminates the vast majority of unsuitable or over-valued companies. Then begins our in-depth research process. We analyse our target companies on the basis of financial risk and business risk. Only if these two concepts satisfy our criteria do we move on to a complete valuation of the business.

Our valuation begins with the net assets of the company and then the earnings power value. We only invest in a company when we have a visible discount to its (intrinsic) value. This forms the basis of our ‘safety first’ concept, as mentioned before, we are just as concerned about the return of our capital as the return on our capital. We only invest into new companies if they show that they are better than our existing holdings. We diversify our holdings across different sectors to reduce risks; however, we keep our portfolio focused, paying far greater attention to detail.

Yellow Capital provides two select concentrated portfolios for our clients. Both portfolios are based on contemporary value investing and share the same research and investment principles.

 

The Val-U-Share™ Portfolio Service is an advisoryinvestment management service designed to deliver.

• Consistent performance returns
• Total return targets
• Investment with a margin of safety
• Strict risk management controls
• Focused portfolio & strategy
• A highly personalised service

Origin

Val-U-Share™ Portfolios originate from the well -known system developed by the father of value investing and security analysis, Ben Graham. The portfolio strategy is contrarian by its nature.

Total Return Objective

Historical evidence shows that over half the return from long-term investments has been through the receipt and reinvestment of dividends. As long term investors Yellow Capital seek to maximise returns by holding investments to provide our clients with both capital appreciation and dividend returns. We don’t believe in short-term speculative bets as an investment philosophy. Evidence shows that it is time in the market rather than timing the market that produces consistent superior returns.

The total return target is 10% per annum.

Concentrated Selection

Val-U-Share™ Portfolios are a highly focused selection of securities. Typically a portfolio has between 12 and 15 stocks which represent the best value opportunities available.

Cash is kept to a minimum.

Dynamic Management Style

Val-U-Share™ uses an unconstrained approach to investment management by not imposing regional or sector limitations on allocations. Val-U-Share™ can increase or decrease exposure to each region, sector or theme to exploit opportunities or to reduce market risk while remaining within strict portfolio risk parameters.

Personalised Advisory Service

Val-U-Share™ is an unbiased advisory service that offers investors full disclosure on the portfolios management with a highly personalised service.

Val-U-Share™ is available on a discretionary managed basis upon request.

Investment Approach

The objective of this portfolio is to provide overall long term growth from capital appreciation and the re-investment of dividends. It invests predominantly in global listed equities. It is a highly focused portfolio of quality companies that maintain a competitive advantage in their sector. The benchmark to which the portfolio is measured is a combination of the IMA Global Growth Index and the MSCI World Index. The aim of the portfolio is to a +10% return annually. Due to the nature of the portfolio, clients are advised to invest for the longer term and typically a minimum of 5 to 15 years to enjoy the benefits of compounding dividends and total returns. This portfolio suits clients who are looking to enhance their wealth over the long term.

Risk Profile & Categories

Val-U-Share™ Long Term Growth Portfolio.

Equity Risk – The Equity Risk category encompasses all portfolios with a risk profile similar to that of world equity markets. Traditionally, such portfolios would have been named as ‘growth’. Equities are typically the dominant asset class.

Currency

GBP

Minimum Investment

£10,000 lump-sum

Portfolio Reporting

The Val-U-Share™ strategy can be run on most modern day asset management platforms. Regular quarterly commentary will be provided together with bi-annual portfolio statements.

Performance Measurement

Val-U-Share™ aim is to achieve target returns for investors. We do not fixate on arbitrary benchmarks and may use them only as reference points.

Liquidity & Redemption

All investment vehicles are listed or registered securities with daily pricing and liquidity.

Swing Factors

Swing factors give Val-U-Share™ flexibility to respond to ominous economic conditions by reducing risk exposure and enhance opportunities for acquiring value in favourable market conditions.

 

The Val-U-Share™ Portfolio Service is an advisory-investment management service designed to deliver.

• Consistent performance returns
• Total return targets
• Investment with a margin of safety
• Strict risk management controls
• Focused portfolio & strategy
• A highly personalised service

Origin

Val-U-Share™ Portfolios originate from the well -known system developed by the father of value investing and security analysis, Ben Graham. The portfolio strategy is contrarian by its nature.

Total Return Objective

As long term investors Yellow Capital seek to maximise returns by holding investments to provide our clients with both capital appreciation and dividend returns. We don’t believe in short-term speculative bets as an investment philosophy. Investing in special situations requires a minimum 3yr horizon for the situation to unfold. A 3yr period is sufficient time to collect a dividend while the situation occurs.

The total return target is 12% per annum.

Concentrated Selection

Val-U-Share™ Portfolios are a highly focused selection of securities. Typically a portfolio has between 12 and 15 stocks which represent the best special situations available.

Cash is kept at 20% to take advantage of opportunities as they appear.

Dynamic Management Style

Val-U-Share™ uses an unconstrained approach to investment management by not imposing regional or sector limitations on allocations. Val-U-Share™ can increase or decrease exposure to each region, sector or theme to exploit opportunities or to reduce market risk while remaining within strict portfolio risk parameters.

Personalised Advisory Service

Val-U-Share™ is an unbiased advisory service that offers investors full disclosure on the portfolios management with a highly personalised service.

Val-U-Share™ is available on a discretionary managed basis upon request.

Investment Approach

The objective of this portfolio is to provide medium-term growth from capital appreciation. It invests predominantly in global listed equities. It is a highly focused portfolio of quality companies that are undervalued or mispriced in the market. The benchmark to which the portfolio is measured is a combination of the IMA Global Growth Index and the MSCI World Index. The return aim of the portfolio is +12% annually through capital appreciation on an absolute return basis. Due to the nature of the portfolio, clients are advised to invest for the medium to long term and typically a minimum of 3 to 7 years to enjoy the full benefits special situations being realised. This portfolio suits clients who are looking to enhance their wealth over the medium to long-term. This portfolio has a performance fee of 10% of any gain above the high water mark of 10%.

Risk Profile & Categories

Val-U-Share™ Special Situations Portfolio.

Equity Risk – The Equity Risk category encompasses all portfolios with a risk profile similar to that of world equity markets. Traditionally, such portfolios would have been named as ‘growth’. Equities are typically the dominant asset class.

Currency

GBP

Minimum Investment

£10,000 lump-sum

Portfolio Reporting

The Val-U-Share™ strategy can be run on most modern day asset management platforms. Regular quarterly commentary will be provided together with bi-annual portfolio statements.

Performance Measurement

Val-U-Share™ aim is to achieve target returns for investors. We do not fixate on arbitrary benchmarks and may use them only as reference points.

Liquidity & Redemption

All investment vehicles are listed or registered securities with daily pricing and liquidity.

Swing Factors

Swing factors give Val-U-Share™ flexibility to respond to ominous economic conditions by
reducing risk exposure and enhance opportunities for acquiring value in favourable market conditions.

 

 

The value and income of any of the securities or investments and the price of shares and the income derived from them, which are recommended by Yellow Capital, may fall as well as rise. Investors may not receive the original amount invested in return. Investors should also be aware that past performance is not a guide to future performance.

Yellow Capital Wealth Management is a trading style of Yellow Capital Investment & Financial Planning Ltd which is an appointed represented of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority. Yellow Capital Wealth Management is a member of the Yellow Capital Group.

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