INVESTMENT PHILOSOPHY

Management of our funds is based on the following principles:

Geographic Competence

We think that in order to successfully manage investments entrusted by clients, investment manager has to have exceptional understanding of businesses that he invests in and to closely monitor those businesses.  It is one of our main principles and we follow it by actively visiting the companies we invest in.  This can be achieved only by relevant experience and by being always close to those businesses or regions where investment takes place.  Our investment team has the most experience investing in Eastern and Central Europe.  This experience as well as geographic closeness of the region enables us to manage professionally our clients’ money.

Active Management

In emerging markets, such as Eastern and Central Europe, active management must bring significantly better investment results compared to passive management (or indexing).  This is because such markets are quite inefficient due to their low development levels and because number of companies producing significant share of GDP are not included in the market indices.  Therefore Prudentis is an active manager seeking to provide maximum investment returns to its clients.

Search for value

We believe that the best investment results can be obtained when we purchase companies for the price that is significantly less than their underlying or true value.  By using our own analysis we try to identify such companies and to purchase them.  We think that this strategy will bring better investment results over the medium and long term than any other strategy.