Part 2: Investing — Chapter 2

VECTOR RIDGE INVESTING PROCESS

Our long-term investing process combines broad macro theme analysis with rigorous fundamental evaluation, always requiring strong confirmation from price action.

THE THREE PILLARS

1

MACRO THEMES FIRST

We assess the current economic regime—tracking growth trends, inflation pressures, policy stance, and liquidity conditions. This determines which asset classes, sectors, and themes are best positioned for multi-year outperformance.

2

FUNDAMENTAL QUALITY

Within favoured macro themes, we select companies with durable competitive advantages, consistent profitability, robust balance sheets, and sustainable growth potential. We focus on high-quality businesses capable of compounding value over decades.

3

PRICE ACTION GATEKEEPER

No matter how compelling the macro backdrop or fundamentals, we only allocate meaningfully when the asset is in a clear, sustained uptrend. We enter on strength or pullbacks within the trend, add on continued confirmation, and trim/exit only on confirmed trend breaks. Price action is the final arbiter—if the market disagrees, we remain patient or in cash.

THIS DISCIPLINED APPROACH DELIVERS

Long-term allocations concentrated in truly high-conviction ideas

Major drawdowns avoided from contra-trend positions

Compounding works effectively across full market cycles

REVIEW FREQUENCY

Holdings are reviewed constantly to match the ever-changing macro backdrop. Positions are adjusted as market conditions evolve, ensuring the portfolio stays aligned with current trends and opportunities.

Trading involves substantial risk of loss. Past performance is not a reliable guide to future performance. This content is for informational purposes only and does not constitute financial advice.