Our investment approach is rooted in a long-term perspective. We generally opt to sell a stock only when, in our assessment, it becomes overvalued or the fundamental reasons for our initial investment no longer hold true. Reflecting this strategy, historical data shows that our average holding period for a stock has been typically around 3 to 4 years.
FAQ Category: Investment Philosophy
Does Banyan Tree have a specific strategy or methodology for stock selection and investment management?
Our investment philosophy and methodology encompass a broad range of considerations, making it a topic too extensive to be adequately covered in a brief response. We have dedicated a comprehensive section on our website to this subject, which we highly recommend for a thorough understanding of our approach. You can explore this in detail in our Investment Philosophy section.
What measures does your firm take to align the interests of your firm/its directors with those of the investors?
Our firm prioritizes aligning the interests of the firm and its directors with our investors.
Our directors have a substantial proportion of their financial networth invested in the same manner as our clients. Furthermore, our fee model is structured to be performance-based, ensuring that the firm and its directors are compensated only when our clients’ investments surpass a specific threshold. Banyan Tree Advisors is solely focused on this line of business, with no other business interests or income sources. The independence of our operations is assured by partnering with external professional firms for services like brokerage, depository, custody, and auditing, where we maintain no commercial interests. This approach underlines our commitment to our clients.