Message from CEO
Vision for 2050
We set our long-term goals until 2050 to become a diversified financial holdings with core values: put our clients’ savings and net asset values on top priority, slowly buildup to become the most trustworthy destination for every individual or institutional investors, and most importantly, create a legacy which does not grow by hot speculation in short term 5-10 years, but can last sustainably for many generations after…
– Mr. Howard Nguyen
CEO & Chief Investment Officer
WHO WE ARE
Established in mid-2017 by young, passionate and experienced investment managers team – who have first started their investment careers amid the Vietnamese banking crisis of 2011-2012, Golden River since then has compounded 26.04% CAGR (from Aug-2017 incorporation to ending 2020), bringing alpha of >20% versus inflation (CPI), of >15% versus risk-free rate (bank deposit 12M-term), and finally of >5% versus benchmark VN30-Index returns over the same period.
If there is one thing to remember about Golden River, that is we are “value investors”, we consider ourselves to be partial business owner, compounding ourself/our family/our investors assets by the growth of the underlying business, not making effort to speculate to make quick profit.
OUR PRODUCTS
Pooled Account (PA)
Pooled account (PA) is an investment solution suitable for limited-capital nonprofessional individual investors, pensioners, office employees who are disappointed with low interest rate of savings account and would like to increase their money with compounding returns from the stock market. However, we do not welcome individuals with short-term mindset, demanding us to speculate and “get-rich-quick” within 6 months or 1 year. The minimum investment accepted is 300 – 490 million VND.
Segregated Managed Account (SMA)
Segregated managed account (SMA) is an investment solution suitable for high-net-worth individuals, professional investors, or institutional investors who would like to diversify their investment portfolio and risk management with alpha and differentiated strategies of Golden River. We welcome local, foreign professional or institutional investors with the same long-term mindset, value investing philosophy and strong belief in Vietnam growth future. The minimum investment accepted is 5.0 – 9.9 billion VND.
OUR DISTINCTIONS
1. Investment Process
We literally “never” use margin debt leverage, we did our homework by due diligence intensively on every investment, value each business disciplinarily through the cloud system, apply reward/risk Kelly Criterion to properly allocate portfolio, all of these are logical & promise consistent returns over the next 20-30 years without having to guess the markets (*)
2. Long-term Mindset
Borrow Howard Marks words: “We don’t think in terms of days and weeks” – we ignore all the market noises out there. We consider investing in common stock as owning a “partial piece of business”, thus we are patient enough to wait 2-5 years to reap huge rewards. This approach also helps us reduce transaction costs, taxes, and keeps our psychology stable.
3. Differ Fishing Areas
We hunt for “alpha” opportunities thanks to different fishing areas: we stay away from VN30-Index and other “hot issues” – where too many fund managers, proprietary traders, equity analysts and margin speculators focusing on. We prefer “bottom-up approach”, finding unpopular, prospective smallcap & midcap listed on HNX, UPCOM, OTC or similar.
4. Aligned Interest
Apart from strategies, we differentiate ourselves by understanding, putting our clients’ interests on top priority. We only charge a fixed management fee only 1/4, 1/8 average open-ended funds on the market, also counting performance fee only if annual returns better than the hurdle risk-free rate (deposit 12M rate), also high-water-mark condition.
5. Transparent Report
Finally, unlike many firms out there calling themselves “value investors”, instead speculate clients’ money riskily and cannot explain their crazy portfolio volatility, we update our clients’ NAV monthly, having independent auditors, and explain clearly the impacts on our returns and future directions in the annual letter of CEO.
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