Our investment philosophy

Taking a structured, disciplined approach

No one can control or second guess the market’s direction and very few managers can consistently beat the market over reasonable periods of time. Walden Capital believes in harnessing the returns of the market through a structured and disciplined approach over the longer term.

Ultimately it is not timing but time in the market that is important.

More risk brings more reward

Markets are a product of capitalist society; if you take a risk with your capital you are entitled to share the rewards, but you may also have to accept losses. We believe it is impossible to improve your investment return without taking more risk.

Of course, there is good risk and bad risk; higher exposure to the right risk factors leads to higher expected returns, although it cannot guarantee them. Examples of good risk factors include: smaller companies outperform larger ones and value stocks tend to do better than growth stocks.

Diversified portfolios

We don’t hold individual stocks or concentrated funds of only 40–50 stocks. Instead we invest our clients’ assets in diversified portfolios containing thousands of investments, including the shares and bonds of many companies and governments around the world.

This diversification produces, on aggregate, less risk in our portfolios. Although diversification cannot insure an investor against loss it can help prevent large losses.

Controlling what can be controlled

Unnecessary high costs and tax inefficiency can significantly reduce your net investment returns and future wealth. We aim to control these factors while ensuring effective asset allocation, which can be responsible for more than 80 per cent of a diversified portfolio’s return patterns over time.