How we invest

The Raven BCI Worldwide Flexible Fund invests in companies that are growing fast, now and into the future. This must translate into sustained positive share price momentum. While the fund has a Worldwide Flexible mandate it is primarily invested in US growth and tech stocks. Companies must exhibit a sound business model with good financial fundamentals and offer a product or service that satisfies a clear need now or in the future. Management must be stable and of high integrity. Raven Funds follows clear simple principles to maximise returns.

• We are a global investor focused on growth

• We buy and hold, no trading

• We don’t attempt market timing or sector rotation

• We don’t over-diversify, we back our winners

• No derivatives or hedging

• Low fees compared to similar funds

• We don’t follow indices or benchmarks, our goal is maximum long-term returns

What is the risk?

The Fund is a long only equity fund investing in growth stocks, which by their nature display higher volatility and risk. We consider our biggest risk to be the danger of permanent capital loss. Investors with long term growth objectives should not face the need to liquidate in weak market periods. In that case volatility does not pose a risk of capital loss.

The biggest risk of capital loss is posed by company failures due to poor business management decisions and lapses in corporate governance. We choose stocks of companies that have good long term growth prospects and monitor their business fundamentals and governance. We do not engage in risk hedging activities as we believe that their net effect detracts from superior returns. We purposefully do not over-diversify the portfolio as this reduces excess returns. We keep a smaller statistically relevant selection of stocks that should outperform the indices over the long term.

Every investor has their own personal circumstances and tolerance and they need to be comfortable with some volatility. The risk of capital loss is higher over shorter periods, however, expected long-term returns are also higher. The investment horizon for any investor should be at least three years.