Capital Management

The Management of Private Capital and the Generation of Income

Mountesque's programs for the management of capital and income incorporates the simple principles of investing, the effective management of collective investments and the establishment of simple investment objectives.

Our investor services are based on the action and process of observation, analysis, differentiation and classification of intelligence to generate an effective strategy to target investment assets with high potential, with considered and controlled / mitigated risk. We don't work in terms of absolutes but apply all efforts to produce the best results for our clients.

Private Investor Services

Mountesque, as specialists in executive assets, incorporate the following services;

Portfolio analysis and optimisation;
Investing strategy, Investing plans, asset search, acquisition and development.
Asset marketing, negotiation, sale and transaction management.
Investment intelligence (including potentials and risks as dictated by market, social, economic influences).

Class of Executive Assets

We operate across the following investment asset classes:

Commercial real estate (prime offices, warehouses, retail)
Residential real estate (Prime city apartments, city townhouses, country estates).
City Infrastructure
Hotels
Private assets (Existing clients only).

Investing Authority

With respect to the investor's position and preference, the investor must consider the balance of control and authority they wish to hold, share or transfer, for the management of their investment capital and portfolios. There are three different investment service types; Discretionary, Advisory and Execution-only; these are differentiated by the balance of control and authority implied in each.

Execution-only means that we would work under the direction of the client, under their active management.
Discretionary is the complete delegation of authority over Investing decision beyond consultations.
Advisory; we act only as advisors on the matter and we apply only a time based cost.

Discretionary Services

The isolated investor, focused on their core activities and therefore delegates all investing decisions to Mountesque investment manager. Initiated by consultation to discuss investment objectives, risk appetite, before formulating an investing strategy, plan and program to fit the investor profile and objectives. Through granted authority, investing decisions and transactions are managed by the investing manager, who revises the investing program regularly to ensure alignment with market movements. Performance, market and program updates are sent often and periodically.

Advisory Services

The provision of advice on market intelligence, risks, opportunities and investing strategy by a Mountesque investment manager in order to allow the investor to make a final decision. This service is charged on a consultation basis.

Execution-only Services

The execution of the investor's decisions and instructions at transaction level. Mountesque initiates, executes, manages and controls the sale, or acquisition of an asset. As part of the service; market news, market analysis, market appraisals are delivered before the formulation of a sales strategy that would generate the maximum leverage and value. In acquisitions; due diligence and intelligence are applied meticulously to confirm strong future potential capital growth and income, with minimal risk.

Investment Mandates

Acquisition Growth Strategy

Mountesque will source and pursue asset acquisition opportunities to fulfil income and capital growth objectives and potential.

Active Asset Management and Enhancement Strategy

The execution of an asset focused management program to enhance the condition, design or operational performance; resulting in cash flow and capital values optimisation through improved occupancy rates, average daily rates and revenue per space.

Capital and Risk Management Strategy

Liaison and co-ordination with our finance network to secure diversified funding sources to achieve an appropriate mix of debt and equity in the optimised financing of acquisitions. Mountesque are not advisors but recognise in protecting their clients from market volatility by utilising interest rate and foreign exchange hedging strategies.

Investing Styles

Below we have depicted four styles we adopt in order to approach the market and analyse opportunities.

Senior Strategy

Senior Strategy is the long term, exterior plan, above the Core Strategy which determines and governs the investing activities, including the types of assets to be targeted and the general plan with that asset.

Senior Strategy addresses the following points;

Style of Investing in consideration of timing;
the method of asset identification,
The point of focus; i.e: Cash Yield or Capital Growth
Whether an industry sector would influence growth in asset values.

Mountesque formulates a single stream or blend of Senior Strategies, based on movements of markets and asset values; including the balance between risk and opportunity across markets, economies, industries and asset classes.

Methods adopted in Senior Strategies for balancing inherent risks with maximised returns on markets and assets are;

Growth Investing
Macro Investing
Micro investing; Fundamental analysis, Technical analysis

Growth Investing

What Is Growth Investing?

It is the increase of an investor's capital through the acquisition of assets that have growth potential; where values increase at an above-average rate compared to the asset type, within a particular or across multiple markets.

We observe and analyse three key factors when evaluating potential acquisitions;

Capital Growth Rate
Historical and future cashflow growth potential
Total return of investment

Applied Investing Strategies

Mountesque’s strategy in positioning client capital, is to apply a hybrid strategy of both Growth and Value investing. Our intelligence data is based on establishing the locations, identifying the types and the prospective investments that deliver the best returns in terms of capital growth, followed by cashflow, with minimal expenses. The emphasis is applied in terms of an asset's achievement in capital growth, above cash flow, whilst still expecting a sufficient cashflow balance and maintain the portfolio, to establish credibility and to allow access for better quality performing assets in the future.

Value Investing

Here we seek assets that are valued below their expected, or intended value; commonly known as below market value properties and are assets with development potential to bring assets to their full market potential.

These assets with value increase potential are defined by their current values being undermined because of their condition, lack of modernisation or design and layout that fails in capturing opportunities within it's market place.

Macro and Micro Investing (Top-down or bottom-up investing)

In using a combination of both Micro and Macro investing, Mountesque takes a conservative approach that minimises risk and takes on a strategic view towards targeting assets that deliver profits, whilst reducing risk and exposure.

Macro Investing; Economics and Markets

Macro Investing; assessing macro factors and mega trends for growth trends in economies and markets; indicating areas for risk and capital growth. Applying the evaluation from a macro analysis and formulating a macro investing strategy, a micro strategy is devised to identify the most favourable asset within the parameters set by a macro analysis.

Micro Investing; Fundamental And Technical Analysis

The Micro strategy takes a bottom-up approach, ensuring that from senior strategy down to tactical levels, actions are aligned with the intended conservative parameters.

The Fundamental analysis process is applied in the Senior Strategy of Micro Investing and incorporates the evaluation of all growth and risk factors that could potentially affect a targeted investment’s performance. For a corporation it includes it’s financial information, analysis of structure, organisational culture, statistical management, all forms of management information; administrative processes, level of public goodwill, innovation, research, Intel data bank, company executives, company officers, managers, staff morale, and competitive threats. The essential point is understand what are the growth drivers, how much momentum is left, is there potential to increase growth rates and what are the risks to growth.

Technical analysis is the analysis of asset performance within the market place for the last 5, 10, 15 and 20 years, covering a period of 3 real estate cycles, which have been argued to last for 7 years, without major upheavals in political and financial laws. Tax and social laws and impending major constitutional changes can disrupt a whole real estate period of 7 years.

Measuring and monitoring trends, including growth rates over long periods and comparing to current environment can demonstrate and indicate future potential in growth rates and their longevity. Essentially, technical analysis observes and concludes on the trends of asset prices but Mountesque will use a combination of both fundamental and technical analysis. We know what we are looking for in terms of potential and in assessing real values as we know how pricing dynamics work, how to control prices and values, systematically and ethically.

Leveraging Intelligence

We leveraging real estate, economic and market intelligence, at both macro and micro level, against competitor investors; our clients must perform better than their competitors as part of a long term strategy to elevate the ability for their capital to influence markets.

Whilst other investors are expecting to consider the performance versus market trends, the resulting profits; our approach is to combine investing strategy to also competitive strategies that take into account the strategies, activities, viewpoints and results of mass market investors.