As a result of the broad diversification of our portfolio, we utilize several finance techniques in creating, managing, and controlling our investment vehicles and portfolios, but regardless of our several techniques, all our techniques fall under the umbrella of value investing.

Skull Group INC. only invests in assets that we have intelligently understood, to increase the accuracy of our expected asset and portfolio performance.

We attempt to intelligently understand companies by utilizing various techniques in finance, business, marketing and economics, to increase expected performance accuracy, where exponential absolute returns remains our objective and focus.

Some of our analyzation techniques includes;

• Analyzing Management.

• Analyzing Corporate Governance to determine how the asset reacts to changes in its related business environment.

• Analyzing Financial Statements – Traditional (and Contribution Margins if possible) by making certain that;
† Current asset (share) value must always be below the book value per share, i.e. low Price to Book ratio.
† Debt to Asset ratio never above 45%
† Low Debt to Equity ratio
† Low Degree of Total Leverage (DTL)
† Comparison of DOL against DFL, and several other very intelligent techniques

Our Value Investing Philosophy

The main objective of our value investing philosophy, is to only make capital asset purchases, when its intrinsic value is higher than its current market price, and the probability of an exponential appreciation of the net capital asset value in the near long-run is at a high threshold, where the related beta (risk factor) must be very low.

Our Value Investing Philosophy Principles:

The value investing principles process which we strictly abide by in all our investment activities are;

1.   All capital investments have intrinsic value: The idea is that if you know the true value of the capital investment, i.e. financial securities, real estate, private equity, etc, you can benefit from its intrinsic value by engaging in purchase's only when there is a bargain price opportunity.

No capital investment should be executed, without a bargain price opportunity tied to it, which is at least at par, or below its true intrinsic value.

To successfully complete this first principle, intelligent data which have been scientifically gathered are utilized and interpreted very intelligently, without emotional distractions present in its least measure.

2.  A strict Margin of Safety must always be present during all investing activities: Following this principle, we only engage in the purchase of capital assets when their bargaining purchase price are at least two-thirds or less of their true intrinsic value.

This principle (strategy) hedge's us against loosing capital investment funds, if the investment performs below our expectations or poorly, and places us in the position to reap greater profits when the investment performs brilliantly.

Significant exponential increments in our profit margins is the required performance results.

3.  Evidence to support the Efficient-Market Hypothesis is not scientific, thus, it is flawed: This efficient market hypothesis when related generally to all capital investments (i.e. Purchase of financial and real assets for capital gains), assumes that selling prices already accounts for all informations about the issuing (selling) entity, thus, underpricing or overpricing assumptions should be eliminated.

We firmly believe that most times, the purchase price for real and financial assets are either underpriced or overpriced, where we utilize intelligent analysis to arrive at a scientifically derived conclusion of all asset purchase price true conditions, before capital commitments are ever executed.

In this context, our strategy is to only consider underpriced assets for long-term positions and in our hedge funds vehicle, short overpriced assets that have been earmarked as being positioned for value, after undergoing our various scientifically backed tests.

4.  To succeed, we must always be Contrarians: This is a strict principle we always abide by, especially when we implement and execute activities related to financial assets, as we never follow the herd, but simply follow our intelligently interpreted scientifically based data, and the principles and characteristics that governs all our investment portfolios.

For financial securities, we find ourselves mostly in the opposite direction of everyone else-the herd, where house-hold brand names that have a verifiable long-term history of sustainability, are mostly our targets for long-term investments, as our portfolio beta greatly decreases in such value conditions.

5.  Investment success requires Diligence and Patience: We firmly believe that all activities including investing, requires a very strict adherence to diligence and patience, from the commencement, planning, implementation, execution and control stages/steps of the activity.

This is why even though a particular asset is a perfect investment medium, we won't complete the asset acquisition or purchase, if it is overpriced or even at par with its intrinsic value. We invest when the assets are underpriced

6.  Gathering and Intelligent interpretation of scientifically backed data is amongst the most important factor for success: This is our principle which is always utilized whenever the purchase of an asset is considered. It is similar to using an operational GPS or a Map with compass to find an unknown location, instead of simply commuting to find the location without valid navigational assistance.

This principle firmly places us on the correct path to our expectations, without mis-direction that could result from emotions.

For our Hedge Funds investment vehicles, we utilize all principles of value investing, but we do not;

A.  Hold securities based on an extended long-term position as in our value investment fund vehicle.

B.  Our long positions are underpriced assets, and our short positions are overpriced assets.

C.  We incorporate the Growth Investing principles when selecting our long positions, i.e. we always expect our Hedge Funds portfolio to perform at a 5year projected minimum average growth rate of 10%-15% per year, with very high potential to double in at least, a 5year time-period.

Very prompt exponential investment capital gains regardless of the volatility in the marketplace, is always the expected performance we aim to realize from our Hedge Funds vehicle.

Amongst our mastered intelligent scientific approach for entering or exiting the marketplace when investing in securities, especially in our Hedge Funds vehicle, are our 10 valued chart patterns which we are professionally accustomed to;

1.  The Symmetrical Triangle – (Bullish & Bearish).
2.  The Ascending/Descending Triangles.
3.  The Head & Shoulders.
4.  The Double Top and Double Bottom.
5.  The Triple Top and Triple Bottom.
6.  The Pennant.
7.  The Cup and Handle.
8.  The Rounding Bottom.
9.  The Flag Continuation.
10.  The Falling Wedge.

Algorithms also plays a major role in our investment decisions, as they also assist us in understanding the financial marketplace with more precision/accuracy.

Interested in investing with us?
Please click here to request investment informations!