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18 Asset Management

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About 18 Asset Management

18 Asset Management (18 Asset) takes care of its client investments so that the clients can spend their time on what really matters to them.

18 Asset is an independent investment management boutique focused on managing Canadian equities solely for institutional accounts. Working with consultants, fund sponsors, endowments and sub-advisory clients, 18 Asset focuses portfolios on achieving the desired results. 18 Asset manages “long-only” Canadian Equity portfolios (no derivatives, leverage or short selling) for Institutional and Private Clients. The main 18 Asset product offering consists of a Canadian Equity Focus.

18 AM’s leaders are industry veterans with a demonstrated ability to build strong investment teams and deliver value added performance.

Investment Philosophy

18 AM’s investment process is based on six key cornerstones:

  1. The foundation of our investment process is our focus on a stock’s fundamentals. The key performance drivers of a stock are its balance sheet and income statement qualities, and its risk characteristics. Fundamentals matter.
  2. With so many stocks to choose from, a systematic approach gives us the ability to gather the fundamentals, assess them and objectively determine the attractiveness of stocks versus each other. Objectivity and discipline are integral to our process.
  3. Human judgement matters. A systematic approach needs to be complemented with “human touch” while still maintaining the discipline of the approach.
  4. Risk comes into a portfolio for two main reasons: by investing in a stock at the wrong time or by investing in a style when it is out of favour. Therefore, we manage risk through the use of sell disciplines and style rotation. Moving out of one investment style and into another is just as important to us as moving out of one stock and into another.
  5. Risk management is critical and must be applied at every step of the investment process. We focus on client-centric risk measures using loss-based measures instead of mathematical or statistical terms.
  6. The markets are dynamic. We need to adapt and constantly evolve our processes and our models. Systematically moving from one style to another is an example of adapting to changing market conditions.