IN A NUTSHELL, WE CREATE VALUE

ADC – Al Dhabi Capital Limited is all about excellence and rigour. We employ a disciplined investment process based on bottom-up research and fundamental analysis. Our aim is to provide our clients with solutions that will preserve and grow their wealth.

Our approach is geared to our clients’ need for diversification, drawing upon our deep knowledge of the markets and the performance of key sectors in them. We are one of the few firms based in the UAE that is able to deliver this kind of local, regional and global investment service. We seek higher returns by investing where we see intrinsic value, but we are also opportunistic where we spot market inefficiencies leading to price anomalies.

We have strategies for UAE, Regional and Global investments to suit a wide range of requirements and preferences.

CORE VALUE AND PERIPHERAL GROWTH

The UAE Portfolio investment strategy invests in equities listed in ADX, DFM, Nasdaq Dubai, LSE and any other exchanges on which UAE securities can be traded. It comprises flexible elements of core value and peripheral growth.

Its “core value” is based on a high and sustainable dividend yield and other strong fundamentals, such as balance sheet, ROE and return on invested capital, with a 3- to 5-year investment horizon.

The “peripheral growth” element is based on stocks that have good momentum and the potential for high earnings growth and short- to medium-term capital appreciation.

TWO HORIZONS FOR REGIONAL INVESTMENTS

ADC – Al Dhabi Capital Limited offers two MENA investment strategies, MENA Value and MENA Tactical, based on the appetite and mandate of our clients.

MENA Value is structured to produce absolute returns over the longer term (more than 3 years) through capital appreciation. It invests in listed equities and fixed income securities in MENA and Turkey. Stocks are selected both for their underlying strength and in terms of currency stability. This portfolio has a relatively low turnover but has delivered a favourable performance compared to the S&P Pan Arab Index.

While also based on an absolute return configuration, MENA Tactical includes a very strong emphasis on GCC markets. The investment team bases their decisions for stocks in this portfolio on cross country and cross sector analysis to identify market inefficiencies. The horizon for these investments is short to medium term (3 months to 3 years). The turnover rate for MENA Tactical investments is high, but large positions are built on earnings growth potential, as well as company or economic turnarounds and the prospects for increased investment.

A UNIQUE COMBINATION FOR ANY MARKET CYCLE

We are among the very few UAE-based investment firms to implement and manage a Global Long/Short strategy for investors. This combines a top down, theme-based approach with a bottom up, stock fundamentals-based selection process. It is principally focused on USA and Europe and also seizes opportunities in select emerging economies.

The objective of this strategy is to achieve consistent and positive absolute returns, whatever the economic cycle. It has a medium- to long-term investment horizon and makes selective use of derivatives as well as FOREX forward contracts for hedging purposes.