Investment Philosophy

Our investment philosophy is to create and sustain value by enabling good businesses to achieve their full potential.

VIF has developed and refined a disciplined, scalable process to source and evaluate potential investment opportunities, structure and execute transactions, implement value-added operational strategies, and ultimately generate and realize exceptional returns.  

Our investment model starts by selecting well-positioned companies with best-in-class products and related services, referenceable customers, and attractive market dynamics.  In addition to financial valuation, we place strong emphasis on management quality and governance model, we favor management who align their interests of their own with those of shareholders and focus on the operational excellence and best practices that are critical for long-term value creation.  (Please see our investment approach and risk management process below.)

Global Vision

Targeting companies with disruptive technologies that can better the world   
Long-Term Approach

Maximizing long-term success of our companies
Adding Value

Adding exceptional value financially and operationally to each portfolio company

Investment Approach

Using the classic criteria developed by Graham and Dodd and carried on by their disciple, Warren Buffet, the fund uses several measurements of stock value. The company’s debt levels, their ability to bring increasing sales to the bottom line, and management’s use of free cash flow are just a few of the variables. A present value calculation of the 10 year projected earnings, using a risk free rate of return, is compared to the current stock price. 
Accel Value Investment Model
Below are the 4 steps in our process we use to identify companies and manage our investment:
  • Screening – we use quantitative ratios or build our own criteria to filter out the few best companies in the industries which we are familiar with.  (Myth: you don’t need to search through about 50,000 public companies before you find your favorites)
  • Due Diligence – when we narrow down to 15 to 20 companies, we start research that company in and out, even try out the products or services yourself.  (Myth: imagine you were asked to invest $1 million in your friend’s ice-cream store, what would you do?)
  • Price versus Value – we have developed a model to find the intrinsic value of a company and set a safety margin (i.e. value >> market price). (Myth: you don’t need to be 100% accurate with the intrinsic value. As Buffet says “”It is better to be approximately right than precisely wrong.”)
  • Trading Strategy – we buy the stock when its market price is << the intrinsic value.  We will also take the macro and industry factors into account when we execute our trades. The time to value maybe sometimes longer than 6 months or a year. We will sell off shares gradually when market price is approaching intrinsic value.

Active Risk Management

  • Limit the size of an investment in a SINGLE stock under 20%
  • Big margin of safety –  Huge gap between market price (P) and calculated fair value (V) (i.e. P-V spread > 50%)
  • Gradual profit realization when P-V spread shrinks
  • Consistently assess the market conditions & individual stock volatility and then make adjustment 
  • Optional hedging by investing in call or put options
You must be logged in to add gadgets that are only visible to you