Pentalpha Investment Management Pty Ltd is not another “me too” Australian share manager aiming to outperform a market index or invest to optimise for total return, regardless of capital growth, dividend yield, or without surgically managing the risks of any or all of these individual components at the stock level.
Pentalpha's singular reason for being is by design rather than claim, with as much focus on risk management and control as it is selecting the best fit-for-purpose stocks to satisfy very specific investment objectives.
Our philosophy is built around managing the risk of investing in individual Australian shares. A carefully selected portfolio of stocks will provide a very competitive, reliable and tax-friendly income stream for those investors looking for high yield on 100% of their investment.
Through disciplined risk management, this can be achieved without putting anywhere near 100% of the capital value of their investment at risk. How? Each of the individual shareholdings in Pentalpha’s portfolio are continuously protected against potentially outsized shorter term capital losses that may compromise their annual high dividend yield, effectively putting a floor under the expected total return outcome.
This is undertaken through skilled stock selection and actively managed stock-specific hedging, using secure, transparent and liquid exchange-traded options as they have always intended to be used - for risk management and hedging rather than complex trading for speculative gain and income generation.
Our Investment Strategy
Pentalpha exists for the risk-averse investor. The investment strategy specifically caters to those looking for:
- Disciplined risk management to provide the security of not being excessively exposed to the whim of the market.
- High income yields to adequately fund spending each year.
- Sufficient growth over time to preserve the real value of capital and fight inflation.
- Cost-efficient protection to preserve the nominal value of capital.
- Stable returns through time to provide certainty of outcome.