The Binary Capital Philosophy
Portfolio management is both an art and a science.
Our Approach to Portfolio Management
Binary Capital is a privately owned investment firm that has developed its investment philosophy in-house, including proprietary processes, models, and strategies. We emphasise full ownership and independence in our approach to client investments. Our distinctiveness extends beyond investment philosophy to our team, culture, and collective mindset. In summary, we are long-term, fundamental investors.
Our Investment Philosophy
At Binary Capital, we view portfolio management as a blend of art and science.
Our team combines investment methodology with the best available data to craft multi-asset investment strategies marked by conviction, active management, and independent long-term thinking.
Investing long-term.
Our institutional investment mindset is rooted in a focus on long-term themes, dismissing short-term trends and noise.
We believe in patient capital investing, avoiding the zero-sum game of trying to time the market daily, and instead concentrating on long-term goals with patience and determination. We recognise the past as a source of learning, but our focus is firmly on the future.
A high conviction approach.
What sets us apart is our willingness to support our convictions with substantial investment positions, distinguishing us from our peers. Embracing uniqueness, we are unafraid to cultivate portfolios that deviate from the consensus.
Sticking with our best ideas.
We place a strong emphasis on investing in our best ideas.
Our strategy is rooted in a clear understanding of what we like and do not like. Once a fund is meticulously selected, our commitment remains resolute throughout the entirety of the investment cycle.
Seeking asymmetrical returns.
Our investment philosophy is underscored by a strategic pursuit of asymmetrical returns. We are dedicated to identifying opportunities where potential gains significantly outweigh potential losses.
Investing in long-term secular trends.
We seek to identify and capitalise on secular trends.
We adopt a thematic approach, focusing on long-term trends such as technology, artificial intelligence, and healthcare innovation. Additionally, we consider various investment styles, including growth, value, core and quality, aligning our strategies with evolving market dynamics and opportunities.
Forward-looking and optimistic.
Our investment philosophy is rooted in the belief that by remaining forward-thinking and optimistic, we can navigate the complexities of the financial markets and unlock value for our clients.
Investing in high quality, liquid investment opportunities.
Our emphasis is on high-quality, highly-liquid strategies. We hold a strong preference for investment funds issued by reputable, substantial investment houses, as well as those managed by the finest boutique talent in the industry.
Diversified, but not overly-diversified.
Our portfolios span a broad spectrum of funds and asset classes, striking a careful balance between comprehensive diversification and focused investments. Each portfolio is by design well-diversified, avoiding unnecessary complexity.
Long-term strategic asset allocation.
Adhering to a long-term strategic asset allocation framework, we engage in semi-annual rebalancing, quarterly investment committee meetings, monthly reviews and weekly monitoring.
Tactical asset allocation is employed as needed, always with a commitment to long-term thinking.
Our Investment Philosophy
At Binary Capital, we view portfolio management as a blend of art and science. Our team combines investment methodology with the best available data to craft multi-asset investment strategies marked by conviction, active management, and independent long-term thinking.
Investing long-term.
Our institutional investment mindset is rooted in a focus on long-term themes, dismissing short-term trends and noise. We believe in patient capital investing, avoiding the zero-sum game of trying to time the market daily, and instead concentrating on long-term goals with patience and determination. We recognize the past as a source of learning, but our focus is firmly on the future.
A high conviction approach
What sets us apart is our willingness to support our convictions with substantial investment positions, distinguishing us from our peers. Embracing uniqueness, we're unafraid to cultivate portfolios that deviate from the consensus.
Sticking with our best ideas
We place a strong emphasis on investing in our best ideas. Our strategy is rooted in a clear understanding of what we like and do not like. Once a fund is meticulously selected, our commitment remains resolute throughout the entirety of the investment cycle.
Seeking asymmetrical returns
Our investment philosophy is underscored by a strategic pursuit of asymmetrical returns. We are dedicated to identifying opportunities where potential gains significantly outweigh potential losses.
Investing in long-term secular trends
We seek to identify and capitalise on secular trends. We adopt a thematic approach, focusing on long-term trends such as technology, artificial intelligence, and healthcare innovation. Additionally, we consider various investment styles, including growth, value, core and quality, aligning our strategies with evolving market dynamics and opportunities.
Forward-looking and optimistic
Our investment philosophy is rooted in the belief that by remaining forward-thinking and optimistic, we can navigate the complexities of the financial markets and unlock value for our clients. We are committed to staying ahead of the curve, continuously adapting to changing market dynamics and emerging trends
Investment Specialisms at Binary Capital
- Open-ended Funds
- ETFs
- UK listed Investment Trusts
- Direct Equities
- Direct Bonds
- Multi-asset, risk managed portfolios
- Capital preservation portfolios
- Active - Long-term, high conviction strategies
- Passive investing
- Responsible investment
- Flexibility of equity styles - Core, Growth, High-growth and Value.
- Thematic thinking and allocation
Risk Profiles
0 - 35%
Equity Risk Target
20%
Typical Equity Allocation
1.0 - 6.0
5 – Year volatility target
- The Defensive risk profile’s primary goal is capital preservation while achieving returns through a mix of income and capital growth strategies, emphasising the importance of safeguarding capital.
- The strategy allocates across various asset classes, with a very strong focus on fixed income or fixed-income like exposure.
- Tailored for investors seeking lower risk compared to full equity exposure, especially those who are wary of equities, offering a blend of modest capital growth and capital protection with minimise fluctuations in capital values. The strategy is intended for investors with a low/medium attitude to risk
- Minimum Recommended Investment Time Horizon: 5 years
25 - 55%
Equity Risk Target
40%
Typical Equity Allocation
3.0 - 8.0
5 – Year volatility target
- The Cautious risk profile aims to generate returns through a blend of income and capital growth, with a primary focus on preserving capital.
- The strategy allocates across various asset classes, with a strong focus on fixed income or fixed-income like exposure
- Ideal for investors seeking lower risk compared to full equity exposure and exhibiting caution towards equity returns, it caters to those desiring a mix of capital growth and income with minimised fluctuations in capital values. The strategy is intended for investors with a low/medium attitude to risk.
- Minimum Recommended Investment Time Horizon: 5 years
45 - 75%
Equity Risk Target
60%
Typical Equity Allocation
5.0 -11.0
5 – Year volatility target
65 - 95%
Equity Risk Target
80%
Typical Equity Allocation
7.0 - 13.0
5 – Year volatility target
- The Growth risk profile aims to achieve returns through a blend of income and capital growth, with a particular emphasis on long-term capital appreciation.
- The strategy allocates across various asset classes, adopting a balanced approach to meet its objectives, with a strong bias towards equities.
- Suited for higher-risk investors seeking to maximise long-term returns with significant exposure to equity markets, it caters to those targeting capital growth. The strategy is intended for investors with a high attitude to risk.
- Minimum Recommended Investment Time Horizon: 5 – 7 years
85%+
Equity Risk Target
90 - 100%
Typical Equity Allocation
11.0 - 16.0
5 – Year volatility target
- The adventurous risk profile aims to achieve returns through a blend of income and capital growth, emphasising long-term capital appreciation.
- The strategy allocates across various asset classes, with a very strong bias towards equities.
- Designed for higher-risk investors seeking to Maximise long-term returns with very high exposure to equity markets, it caters to those prioritising capital growth and capable of accepting and tolerating wide fluctuations in capital values. The strategy is intended for investors with a high attitude to risk.
- Minimum Recommended Investment Time Horizon: 7 – 10 years
Featured Investment Houses
We invest in fund solutions from the very best investment houses in the world.
Below are examples of fund houses that we invest alongside.
