NEPSIS™, INC.'S FOUR KEYS TO INVESTING FOR SUCCESS —
PHILOSOPHY… STRATEGY… FLEXIBILITY… TRANSPARENCY

 


PHILOSOPHY

Clarity, observation and discernment are the core of our investment philosophy. At Nepsis, we invest in quality, undervalued companies with an unhindered vigilance and adherence to our investment plan. We highly leverage two powerful investment tools - volatility and Strategic Cost Averaging™. Diversification is essential, but over-diversification can equally dilute a portfolio’s ability to grow over time. Our equity selections are primarily rooted in risk-adjusted return.

Our investment philosophy encompasses the following evaluation criteria:

  • Invest in companies over time, not the "stock market"
  • Diversification, not over-diversification
  • Long-Term Trends
  • Dividends
  • Follow companies, not benchmarks

STRATEGY

We invest in companies and industries, not in the stock market. This perspective allows us to capitalize on market pullbacks due to other investors’ fear or greed-based investing. Our strategy looks to increase our positions in companies with strong fundamentals and attractive growth opportunities. Fundamental investment principles and analysis drive our strategy. We do not attempt to time the market, but rather invest in strong companies over time. To accomplish this, we utilize Strategic Cost Averaging™ and portfolio rebalancing on a continual basis.

Our portfolio construction approach is based on clear fundamentals:

  • Extensive market research
  • Top-down and bottom-up analysis
  • Portfolios construction of 25 to 35 companies
  • Invest in secular and cyclical trends
  • Initial investment maximum of 5% in any one company
  • Hedging portfolio holdings when appropriate
  • Utilize a global allocation

FLEXIBILITY

Through vigilance and an adherence to our philosophy and strategy, we gain the flexibility needed to buy more of the companies we want to own when they go “on sale.” This flexibility permits us to respond to uncertainty and market opportunities in a timely and cost-effective manner. Our proactive portfolio management allows for adjustments based on unforeseen changes in the economy and/or with the businesses we own.

 


TRANSPARENCY

Our clients understand what they own and why they own it. It sounds simple, but most investors lack clarity in these basic investment facts. We help our clients understand the quality of their assets, helping to increase their confidence and gain further clarity in their investments. We believe it is the investment clarity that allows investors to "stick to the knitting" during stock market volatility. Additionally, our clients have the ability to closely monitor their own portfolios. Nepsis does not house any assets and does not serve as a custodian of any securities.

 



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Glossary of Terms

Strategic Cost Averaging™ into Positions: Because the stock market is often driven by fear and greed, it provides us with an ongoing opportunity to Strategic Cost Average™ into companies we want to own. We look forward to market corrections and pullbacks because they provide opportunities to buy more of the companies we want to own when they are on sale.

Rebalancing Portfolios: We continually monitor and assess the fundamentals and valuations of the current companies we own. Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original desired level of asset allocation. It is important to both Strategic Cost Average™ into companies we want to own and dollar cost average out of companies to lock in gains and maintain allocations.

Ongoing Hedging: When appropriate, we will hold cash in portfolios and monitor the companies we own and the strength of the overall economy. We then evaluate the situation and adjust accordingly. Additionally, because we believe in investing in companies, not the “stock market,” we may use hedging techniques that enable us to continue to hold onto companies we want to own, despite what may be perceived as short-term negative influences affecting the company price.

Diversification: Studies have shown that a portfolio of 20 to 40 companies is an appropriately diversified portfolio. The benefits of diversification are significantly reduced once a portfolio has over 40 companies in the portfolio. We have patience when looking for entry points into new positions and continuing to Strategic Cost Average™ into the companies we currently own.

 

Investing With Clarity™ Blog

Visit the Nepsis Blog by Mark Pearson, Founder & CIO… It's All About Clarity™

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News and Quarterly Updates

Q1 2018 Report

Nepsis has released its 1st Quarter Report accompanied by a new video series. View »


Q4 2017 Report

Nepsis has released its 4th Quarter Report accompanied by a new video series. View »


Q2 2017 Report

Nepsis has released its 2nd Quarter Report accompanied by a new video series. View »


Q1 2017 Report

Nepsis has released its 1st Quarter Report accompanied by a new video series. View »


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