The Harvard House Group uses primarily a top-down fundamental approach to market analysis. This involves assessing the state of global and domestic economies, in order to gauge where each economy is in terms of its own growth cycle. Forward-looking analysis is imperative, and optimal asset allocation between asset classes is crucial as well as the allocation within such classes. Once an economic view has been established, bottom-up analysis (or stock picking) is used to identify superior-performing securities within each asset class.

Within the equity environment, our focus is on the companies that drive the Johannesburg Stock Exchange. Generally, these companies are large capital growth companies. Our flexibility allows us to incorporate value and cyclical stocks when their addition is expected to enhance the overall return.

We are investors as opposed to traders. We employ a long-term investment approach. We focus on the larger companies on the Stock Exchange as the top 40 to 50 companies account for approximately 90% of the market capitalisation of the Exchange. We never restrict ourselves, but as a rule, shares are seldom purchased that fall outside of either the FTSE/JSE Top 40 or Midcap Indices. We conduct extensive fundamental analysis. Based on the results, the purchased securities are then over or underweighted according to our expectations.

Owing to our strong base in private clients, we have assimilated a huge depth of knowledge on the listed property and preference share sectors.

Our approach to the fixed income market is similar. We focus on large, liquid, government-issued paper as the core of the portfolio. Depending on conditions in the market and the outlook for interest rates and inflation, we do, from time to time, consider that the selection of corporate bonds may enhance the yield of the portfolio.

The company offers a range of products to clients, depending on their individual needs and requirements.
Products include:

  • Discretionary portfolio management for institutions, managed relative to a benchmark. The target is to outperform the chosen benchmark.
  • Index tracking for institutions. The target is to track a chosen index within tight tracking error parameters.