Theron de Ris, CFA, CAIA is the Managing Partner of Eschler Asset Management, a concentrated value-oriented manager with a primary focus on North-American small and mid cap equities.
Since launch in October 2012, Eschler has outperformed the peer group with an uncorrelated strategy versus peers (monthly net return correlation 22% vs Credit Suisse Long/Short Equity TR (USD)) and the broader stock market (correlation of 23% vs S&P 500), offering both strong performance and diversification as a portfolio addition or replacement.
Eschler seeks to invest in well-financed, owner/operator-run businesses in cyclical industries demonstrating attractive normalized earnings power and risk-reward which could be out-of-favor but with a strong recovery potential. Eschler’s research process combines a top-down skillset in identifying attractive industries with common sense bottom-up business analysis, as well as particular expertise in resources, financials and energy.
In this Opalesque.TV BACKSTAGE video, Theron also speaks about:
– Stock Selection Process & Criteria
– Concentrated, long-biased but also adds value on the short side
– The attraction of owner-operators and significant insider ownership
– “If you have an algorithm, use it!” The need for a hard-coded risk framework
– What are better ratios to focus on than Return on Equity and Return on Assets?
– How to use macro and industry insights to better position the portfolio
– Why Eschler’s aligned fee structure should matter to end investors