EAP_SS23_Axia_Epinikion

Axia's investment strategy is centered on a macroeconomic top-down analysis and a fundamental-based stock picking, getting promising investment opportunities in the US stock market. The company believes that investing solely in the US market is an effective way to achieve broad sector diversification and ensure above-average resilience to economic uncertainty. Axia's investment model focuses on ten sectors, employing a scoring model based on eight crucial company characteristics. The company assigns thresholds and scores to each metric and overweights key factors, including the P/B ratio, EV/EBITDA, and ROE. Additionally, liquidity in tradable stocks is a top priority, and trading volume is factored into the model. Based on a macroeconomic approach, Axia first allocates to sectors and evaluates under- and overweights compared to the benchmark. The resulting weighting is then invested in the five most promising stocks using the in-house developed scoring system. The portfolio is rebalanced weekly, and Axia follows a set process to focus on the highest percentage discrepancy between the best and worst-performing shares in a given sector. The company ensures that it is taking advantage of the market's volatility. The company's focus on intrinsic value, as opposed to share price, is a unique aspect of its investment philosophy. Axia believes that a company's fundamental valuation is not necessarily related to its share price and is particularly interested in companies whose intrinsic value does not change due to fluctuations in their share price. This approach reflects the company's commitment to identifying long-term opportunities that are not overly influenced by short-term fluctuations. Axia's portfolio aims for asset preservation and moderate value increase through fundamental company selection and trading. It uses the MSCI USA and the Russell 3000 as benchmarks for its geographical and composition focus.