In addition to a profit maximizing investment approach, you will find the following ethical features embedded in our investment universe:
- The company must not engage in or promote alcoholism, pornography and other social ills.
- The company must not engage in espionage or military weapons production.
- The company should have minimum exposure to usury i.e. interest based lending/borrowing.
Compliance with above principles does not mean any compromise on generating profitable investment ideas. For instance the US stock market offers scores of such ethical opportunities. On April 30, 2011, approximately 44% of US listed stocks that accounted for 50% of US stock market capitalization were compliant with above ethical principles.
More specifically, 70% of technology stocks are compliant with our ethical principles. Therefore our first set of research universe is based on +300 US-listed technology stocks and ADRs that are not only compliant with our ethical principles but also provide daily liquidity above US$2 million.
Our core performance metric shall remain out-performance against the benchmark S&P500 through our model portfolio.
