Archea – Asia Innovators

Archea Asia Innovators, is an Asian technology-focused SMID-Cap equities fund. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality, transparent and liquid listed equities in the Asia-Pacific region that ride on and benefit from these. The Archea Asia Innovators Fund is uniquely positioned as a distinctive and alternative investment strategy for both institutional and individual investors to better manage the market volatility and to provide capital allocation benefit to investors by building strategic optionality in their overall investment portfolio.

Investment Philosophy

Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society.

The targeted companies shall have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy. A higher probability of resiliency in both fundamentals and investment returns suggests that these companies are highly impervious to market volatility.

We apply a unique, systematic 4-step investment process to identify the winners and invest in a focused portfolio of 30 to 50 Asian exponential innovators. The fund is diversified, with more than 60 positions. It is managed actively according to both positive and negative information. We analyse and then select companies with true growth potential. The fund can take concentrated sector bets and can invest both in small and large cap USD denominated securities. The risk is reduced through a diversification and the quality of securities, also through an opportunistic approach to company information.

Highlights

  • Invests in highly profitable under-the-radar “exponential” innovators, i.e. who are at least doubling their core earnings over a three- to five-year year period based upon a powerful recurring-revenue business model with significant competitive edge and internal rhythm to create value.
  • Guided by unique and clear investment strategy with singular focus in a portfolio of highly profitable listed Asia SMID-caps, the fund applies a structured step-by-step process to identify winners and to distinguish between the true innovators and the swarming imitators.
  • Mitigates the downside risks from Asian-style accounting tunnelling fraud and mis-governance which escape detection by western-based forensic tools through a proprietary forward-looking fact-based accounting fraud detection system.