Trading: Entry and Exit Discipline


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Once a prospect has been identified, Sonoma International will look to secure a position. Taking our valuation into account, we will often seek to secure a 20-35% discount, facilitated by the nature of our investment. This is in turn transferred to the client, mitigating risk and maximising returns for both parties. If the risk profile of the recommendation is considered to be high, we will seek a greater discount appropriately.

In the case of a equity reducing in value, we will always establish a point of exit after research and modelling have been applied. In the instances where there seems to be additional value, we will increase our positions, thereby averaging down our investment to benefit from the scenario.

However, this works both ways and when necessary, Sonoma will cut a position should the financial dictate a response. This happens when:

  • The assets value increases beyond our projections and is no longer sustainable.
  • The circumstances of the company have changed so significantly, either fundamentally or through extenuating factors that the investment no longer follows its predicted path.
  • An alternative opportunity has arisen which will significantly outperform the current position within the portfolio

Sonoma International does not operate with a day trade mentality. Each recommendation has an entry and exit strategy which has been fully scrutinized before being passed to our advisors. Once we decide on a strategy for any given asset, we will continuously monitor not only the asset, but its industry, market and governing economics to ensure that what we are able to understand what the company is facing and react accordingly


Need more information? Have a specific question in mind? No problem.

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