Capital Preservation

Capital preservation is our primary purpose. It is the cornerstone of our investment strategy.

 

Fikula Capital Management has developed an integrated risk model that is fully embedded into the “Labyrinthine Path”.  Having adopted a holistic approach to risk, we have identified, evaluated, quantified, predicted, diversified, mitigated, and hedged the risks attached to our investment pathway. We have hence retained a comprehensive risk management plan that will help us run the firm in a strategic and systematic manner. 

 

Our integrated risk model mirrors an investment strategy that can essentially be characterised as follows:

 

ü Conceptual

 

ü Formulaic

 

ü Postulates investments made in context

 

ü Leads to a portfolio of correlated assets

 

ü Built upon the concepts of “Partnership-Based Adherence” and Constant Structure of Permanent Adjustment

 

 

Our integrated risk model rests upon four main concepts: Organisation of Uncertainty, Effective Strategy of Adjustment, Optimisation under Organised Uncertainty, and Dynamic Portfolio Insurance.

Organisation of Uncertainty

As a private equity firm, it is our trade to assume the risk of assessing projects and businesses, then financing them with the aim of getting a capital gain thanks to our ability to select the right businesses.

Effective Strategy of Adjustment

The “Labyrinthine Path” is a pathway that allows us to mitigate risk, to value it, and to take advantage of it when it is deemed appropriate to do so.

Optimisation under Organised Uncertainty

The model portfolio built by Fikula Capital Management is atomised. This means that it contains quite a large number of projects, so that the global risk of the portfolio is inferior to the sum of their individual risks, thanks to the law of large numbers.

Dynamic Portfolio Insurance

Fikula Capital Management has designed a portfolio insurance policy with the aim of making sure that our portfolio of assets achieves the terminal value determined beforehand.

Immanence!

Our private equity firm is built around human identity and behavioural psychology.