Investment Process
A Steady Hand in a Volatile Market.
Iguana Investments executes a systematic investment process that combines traditional fundamental modelling with proprietary quantitative analytics. The firm’s core strategy seeks uncorrelated, risk-adjusted returns from listed equities, applying an opportunity set defined by liquidity and transformation potential.
Systematic, disciplined, transformation‑oriented
Our Investment Approach
Universe Filtering
A universe of approximately 4,000 developed-market securities, rigorously screened for rational price behaviour and transformative potential
Five Test Framework
The investment decision framework incorporates five principal tests: management quality, business economics, balance sheet strength, ESG trajectory, and valuation.
Portfolio Construction
Portfolio construction is built around concentrated long exposures (25–35 positions) and diversified short exposures (50–70 positions) with geographical focus on the UK, North America, and Europe.
Risk Management
Risk is managed by strict position sizing, stop-loss policies, and continuous risk monitoring at both portfolio and security level.
Investment Process
Classic Fundamental Analysis
- Traditional Fundamental Analysis including detailed and rigorous modelling of financial statements
- Bespoke internal models
Quantitative Analysis
- A proprietary quantitative analysis tool known as Single Stock Factor Analysis (SSFA).
- The goal of SSFA is to identify stocks with the potential to outperform and to improve the process of optimizing returns.
- SSFA comprises around 20% of our investment process and complements the traditional fundamental investment appraisal.