Our Portfolio
Skale employs a concentrated long/short equity portfolio focused on the long-term, common sense application of global precedents to Asian businesses. Typically, 75% of gross exposure will be China/HK, India and Singapore. With a portfolio of around 30 single stock positions, Skale owns 10-15 stocks that are expected to compound at over +20% IRRs over 3-5 years and is short roughly 15 stocks that are expected to compound at -10% annually over the next 3-5 years. Shorts are treated exactly as longs from a fundamental research and trading perspective. These ~30 names largely come from a growing library of names that the firm has covered for over a decade as well as new industries, sectors, and IPOs that are added over time.
Investment Process
Develop
Maintain a library of ideas based on an internal checklist that assesses industry dynamics, company positioning, management strength, operating leverage, financial leverage, predictability of business model, etc.
Evaluate
The assessment of the business model combined with the 3-5 year IRR will inform position sizing. Longs will target IRRs of ~20% and shorts ~-10%.
monitor
Portfolio limits relating to country-level and sector-level exposures are monitored on a weekly basis.