Our fund specializes in finding companies that have high growth potential but for some reason are not reflected in their current market value. Such companies may be undervalued due to low awareness, temporary issues, industry cyclicality, or other factors.
We analyze companies' financial indicators such as profitability, debt burden, dividend policy, and market capitalization. We also study their business model, competitive advantages, growth prospects, and risks.
We use various multiples to assess the degree of undervaluation of companies, such as P/E (price-to-earnings ratio), EV/EBITDA (enterprise value-to-EBITDA), and others.
We select companies with low values of these multiples compared to industry averages or historical levels. This means that we buy the stocks of these companies cheaper than their future earnings justify. Thus, we have the opportunity to profit from the difference between the actual and potential stock prices.
Our fund does not engage in speculative operations in the market. We do not buy or sell stocks frequently or for random reasons.
We believe that the best way to achieve good returns is to invest in quality companies and hold their stocks for a long period of time.
We adhere to the concept of "value investing", which was developed by such famous investors as Benjamin Graham and Warren Buffett. The essence of this approach is to look for good firms that are somehow underestimated by the market. We buy their shares at a low price and wait for the market to realize their true value. This approach requires patience and discipline, but in the long run it brings high returns.
We do not sell company stocks if their prices temporarily decline due to market fluctuations or other factors. We sell stocks only in two cases: if the company has lost its competitive advantages or if we find another company with higher growth potential.
Our fund does not strive for maximum returns at any cost. We also take into account the risks that are associated with investments in different types of assets. We strive to ensure that our portfolio is diversified by industry, geography and asset types.
We also use the “Barbell Method”, the essence of which is the parallel investment in high-yield assets with high risk and conservative, reliable assets with moderate risk. This method allows us not to bet everything when we take risks, thus making it impossible to “lose” in the long run.
SQ STATES LTD has developed its own unique software that allows to conduct more accurate analysis of the market and find more profitable deals, which has significantly increased the company's profits, as well as simplify the work of traders.
Our fund allocates its investments across these markets based on their growth potential, risk level, and current conditions. We constantly monitor market changes and adjust our portfolio accordingly.
Our strategy is effective and reliable for several reasons:
Our strategy is suitable for those investors who want to receive high returns from their investments with a moderate level of risk.