Investment Strategy
A singular focus on asymmetric return.
We invest where complexity creates mispricing. Our edge is analytical rigour applied to situations others find too difficult or too small to pursue.
Philosophy
Conviction over diversification.
Aarin operates a concentrated, high-conviction portfolio. We do not believe that owning more positions reduces risk — we believe that understanding fewer positions deeply is the only durable source of alpha.
We seek situations where the market has mispriced an asset due to complexity, illiquidity, or neglect. Our analytical process is designed to resolve that complexity and arrive at a variant view with high confidence.
Process
Four pillars of every investment decision.
01
Fundamental Research
Every position begins with primary research. We build proprietary financial models, conduct management interviews, and stress-test assumptions before committing capital.
02
Structural Mispricing
We target assets where structural factors — index exclusion, forced selling, regulatory change — create temporary dislocations between price and intrinsic value.
03
Asymmetric Payoff
Position sizing is determined by the ratio of expected upside to downside. We require a minimum 3:1 reward-to-risk before initiating a position.
04
Catalyst Identification
We invest with a clear thesis on what will close the gap between price and value. Positions without an identifiable catalyst are not held regardless of valuation.
Investment Approach
Process-driven. Judgment-led.
Universe
Global equities and credit, with a bias toward mid- and small-cap where analytical edge is greatest
Portfolio concentration
12–18 core positions; top 5 positions typically represent 50–60% of NAV
Holding period
18–36 months on average; we are patient capital
Gross exposure
90–130% long; selective short book for hedging and alpha
Net exposure
60–100% net long; we do not run a market-neutral book
Liquidity
90%+ of the portfolio can be liquidated within 10 trading days
Risk Framework
Risk is managed at the position level, not the portfolio level.
We do not rely on portfolio-level diversification to manage risk. Instead, each position is sized according to its individual risk profile: maximum loss scenario, liquidity, and correlation to existing holdings.
Hard limits are enforced at the position level (maximum 15% of NAV at cost), sector level (maximum 35% of NAV), and geography level (maximum 50% in any single country). These limits are reviewed monthly by the risk committee.
Single position limit
15% of NAV at cost
Sector concentration
35% of NAV maximum
Single country limit
50% of NAV maximum
Drawdown trigger
10% drawdown initiates mandatory portfolio review
Review our track record.
See how the strategy has performed since inception.