The principal investment objective of Cannon Asset Management's asset management team is to develop and manage investment portfolios that deliver above-average investment returns within defined risk parameters. This goal is achieved by pursuing an investment philosophy that draws on a "top down" asset allocation strategy that is flexible but provides essential discipline in the process of fund management. This "top down" method is hinged upon the process of identifying asset classes within geographic regions and currencies that are capable of delivering superior investment returns. From this platform, it is the task of the asset management team to identify sectors and then specific instruments that meet or exceed the investment criteria and return objectives of the investment team and our clients. Whilst this investment philosophy tends to produce a bias towards larger capitalisation counters, investments with smaller market capitalisations are not ignored if they are considered to offer exceptional returns within an appropriate risk framework. Critically, our investment advantage is bolstered by a value-led investment philosophy, that draws on factors that have been established to be critical to delivering sustainable out performance over recognised benchmarks and industry peers.

Investment Process

As noted above, the principal driver of Cannon Asset Management's investment process is our 'top down' asset management strategy. Not only does this strategy bring strict discipline to the typically highly subjective task of portfolio management, but it also provides for a fluidity in method that is generally not associated with management styles (examples of less flexible management styles would be the well-known 'growth' and 'value' approaches to investing). In addition to the advantage of flexibility with discipline brought by our 'top down' asset management style, our investment philosophies display biases towards longer-term investment horizons as well as what might be termed 'contrarian' investment positions. These attitudes to portfolio management generally translate into immediate tangible benefits, which include lower portfolio turnover, and so lower costs to our clients, as well as lower volatility in investment values over time, and so lower risk to our clients. Furthermore, Cannon Asset Management's status as an investment boutique often serves as a source of benefit to our clients in that our size and independence translate into nimbleness in the portfolio management process.

Investment Tools

CAM's investment strategies are driven by a wide range of forces. The most important of these is our in-house investment team, which is responsible for formulating and regularly reviewing Cannon Asset Management's investment strategies. The team is headed by Prof. Adrian Saville. Amongst other things, Cannon Asset Management's investment team is responsible for formulating views on global economic developments and international business and investment trends. In turn, this provides Cannon Asset Management's asset managers with the necessary platforms for identifying business cycle phases; determining asset allocation strategies; and forecasting investment horizons.

Over-and-above the key inputs provided by the investment team, Cannon Asset Management's asset management strategies are informed by three other sources of influence. Cannon Asset Management runs a range of in-house quantitative models that serve as a source of bottom-up research, which provides confirming signals on investment decisions. Further, bottom-up qualitative research  - such as management interviews and company visits - is also conducted. Finally, Cannon Asset Management's asset managers enjoy access to a wide range of out-of-house top-down and bottom-up research, which may be employed to augment in-house products.