At UCS, we build long-term relationship with the companies we invest in, but we also have our exit strategy, as we believe that once a company is well able to gain grounds in their particular field of expertise, they should be given their independence. We work with these companies to build a customized portfolio that reflects their goals, financial situation and approach to risk. Our primary focus is on preservation of principal. We actively monitor each company we own striving for consistent returns that beat the market but don’t create too much volatility.
In the end, we believe that profitability is the key indicator of the health of a company. Our main measure of profitability is a high return on capital; we look for companies that can invest their own money at high rates of returns.
We also look for companies that are generating free cash flow, which gives them the flexibility for things such as divided increases, buying back stock and debt payment. Free cash flow also allows them to make strategic acquisition that can help grow the company and expand its profits.
Our aim is to build portfolios for the long term and find companies with solid financials, good management and exceptional products. We always ensure to maximize the yield we get from our investments while minimizing our risk exposure at every point in time.
We also offer fixed income opportunities in individual investment grade bonds, where we can analyze the underlying financials of the specific company.
In UCS we believe that investment risk must be minimised as much as possible while focusing on achieving optimal returns on our investments. We therefore, adopt the right strategy and framework that is most appropriate to handle a particular business risk bearing in mind that different investments come with unique risk profiles.
To achieve the foregoing, we continuously define a culture that encourages leading risk management standards, exemplary ethical values, personal and corporate integrity and respect for others. Our approach is predicated on the belief that there is a link between standardised, comprehensive approach in the management of risks and the creation of shareholder value. It Forms The Basis For All Our Decision-Making And Control Processes.