Opalesque.TV Interview

Opalesque.TV Interview

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

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