The Opportunity Pot
The Opportunity Pot is where we act on higher conviction investment ideas within clear limits. The important part is not finding more stocks. It is having a repeatable process for deciding which ideas deserve capital.
Learn the framework we use to find, assess and manage higher-conviction opportunities, and see how our research team puts it into practice with Beansprout Pro.
Opportunity process
- 01
Find ideas
Macro themes & market insights
- 02
Screen quantitatively
Financial quality checks
- 03
Research stocks
Quality, catalysts and value
- 04
Build portfolio
Entry, sizing and exit rules
What this pot is for
-
Opportunity
Higher conviction ideas and more active investment opportunities
-
Time horizon
Varies by opportunity, but typically shorter term or more actively managed than the rest of the portfolio
-
Higher risk, conviction led investments
Options include individual stocks, thematic plays, and other active ideas where you have a clear view.
-
Not for
Core wealth building, or taking risks that could undermine the rest of your portfolio
Opportunity Pot Framework
From hundred of stocks to a focused portfolio. See the 4-stage investment process, from finding stock ideas to screening, research, entry price and exit rules. Start with what is changing, screen the numbers, research the business, then decide how much capital the idea deserves.
Stage 1
Find ideas by looking at what is changing
We begin with the market backdrop, structural themes, industry developments and company specific catalysts, then look for businesses that could benefit. The goal is to narrow the universe into a focused shortlist of around 20 stock ideas that fit a clear macro or thematic opportunity.
Track the market backdrop
Follow the macro signals that can change valuations, financing conditions and sector opportunities.
- Interest Rate Track how markets are pricing the next US interest rate move.
- US 10Y Bond Yield Watch the benchmark rate that influences global asset valuations.
- SG 10Y Bond Yield Track local rates and the backdrop for Singapore assets.
- Oil Price Follow a key input for inflation, costs & energy related opportunities.
Explore structural themes
Look for longer term changes that can create opportunities across industries and companies.
AI and data centres
Look beyond the headline and ask which businesses benefit from the infrastructure buildout.
Government spending
Infrastructure and construction demand can create multi year opportunities across the value chain.
Energy security
Power demand, renewables and energy infrastructure can create opportunities for selected companies.
Singapore wealth hub
Growing wealth flows can support banks and businesses exposed to wealth management activity.
Stage 2
Screen quantitatively to narrow the list
A good story is not enough, a company may benefit from an attractive industry trend, but still struggle with slowing earnings, excessive debt or weak profitability. Next, we use three objective financial checks to remove weaker candidates before spending time on deeper research.
Growth Stock Screener
Name | Revenue growth | EPS growth | Net debt/equity | ROE |
|---|---|---|---|---|
| Singtel: Singapore Telecommunications Ltd SGX: Z74 | +0.8% | +40.6% | +28.7% | 19.6% |
| Yangzijiang Shipbuilding (Holdings) Ltd SGX: BS6 | +7.4% | +29.4% | -45.3% | 26.9% |
| Jardine Cycle & Carriage Limited SGX: C07 | -4.2% | +5.4% | +48.5% | 11.6% |
| Venture Corporation Limited SGX: V03 | -7.4% | -6.8% | -45.3% | 8.1% |
| SIA Engineering Company Limited SGX: S59 | +14.3% | +21.2% | +6.1% | 9.6% |
Note: Passing the screen is not a buy signal. It means the stock may deserve deeper research.
Explore Growth Stock ScreenerRevenue & earnings momentum
Is the growth story showing up in the financials?
Balance sheet strength
Can the company support its growth without taking on too much financial risk?
Return on equity
Is the company generating meaningful returns on shareholders' capital?
Income Stock Screener
Name | EPS Growth (3Y) | Net debt / equity | Payout ratio | Free Cash Flow (S$M) | Dividend yield |
|---|---|---|---|---|---|
| INFINITY DEVELOPMENT HOLDINGS SGX: ZBA | +20.6% | -45.9% | 6.9% | 76.6 | 7.5% |
| SIA: Singapore Airlines Limited SGX: C6L | +8.8% | +15.7% | 115.2% | 2,354.1 | 6.8% |
| Genting Singapore Limited SGX: G13 | +14.5% | -39.0% | 123.8% | 121.0 | 6.5% |
| ComfortDelGro Corporation Limited SGX: C52 | +32.9% | +36.7% | 75.3% | -136.5 | 6.4% |
| BRC ASIA LIMITED SGX: BEC | +4.1% | +2.4% | 68.1% | 116.4 | 5.7% |
Note: Passing the screen is not a buy signal. It means the stock may deserve deeper research.
Explore Income Stock ScreenerFundamental strength
Is the business growing its earnings over time?
Financial health
Is the balance sheet sound, the dividend commitment real, and the cash flow genuine?
Valuation
Is the yield meaningful and does it beat the risk-free rate?
Income REITs Screener
Name | DPS growth | Gearing ratio | Dividend yield |
|---|---|---|---|
| Sasseur REIT SGX: CRPU | +0.9% | 25.6% | 10.9% |
| ESR REIT SGX: 9A4U | +453.0% | 41.4% | 10.1% |
| Prime US REIT SGX: OXMU | +110.3% | 44.9% | 8.5% |
| United Hampshire US REIT SGX: ODBU | +8.1% | 40.4% | 8.3% |
| Sabana Industrial REIT SGX: M1GU | +23.4% | 34.9% | 8.2% |
Note: Passing the screen is not a buy signal. It means the stock may deserve deeper research.
Explore Income REITs ScreenerFundamental strength
Is the REIT maintaining or growing distributions to unitholders?
Financial health
Does the REIT have enough balance sheet headroom?
Valuation
Is the yield attractive enough for the risk taken?
Stage 3
Research stocks to form an investment thesis
The screening helps us find companies that look promising on the surface. However, strong financial metrics alone are not enough to justify buying a stock. We assess the business, management, catalysts, valuation and risks, then write down why the opportunity exists and what could prove us wrong.
Four questions before we invest
- 1
Business and management quality
How does the company make money, and can management deliver?
- 2
Catalyst
What could cause earnings or valuation to improve?
- 3
Valuation
Is there enough upside for the risk we are taking?
- 4
Risks
What would make the thesis wrong or less attractive?
See our Pro research in practice
CICT: CapitaLand Integrated Commercial Trust SGX: C38U
Stage 4
Build portfolio with right sizing to diversify and manage risks
A good company can still be a poor investment if we overpay or size the position too aggressively. We set an entry price, position size and exit rules before committing capital, then review the thesis as new facts emerge.
Conviction Rating
Highest conviction 15% to 25%
Strong conviction 8% to 20%- Moderate conviction 3% to 10%
- Low conviction Reduce or exit
- Avoid 0%
The framework in practice
See how we manage our opportunity pot on Beansprout Pro
Pro is where the four stages come together. See our market views, the stocks that make it through our process, our research, and how we translate conviction into portfolio positions.
Explore Beansprout ProOpportunity Pot
S$100k model portfolio
- Find
Stage 1
Market outlook and themes
- Screen
Stage 2
Objective stock screening
- Research
Stage 3
Company research and thesis
- Position
Stage 4
Ratings, sizing and portfolio changes
Meet the team behind our investment research
Gerald Wong, CFA
CEO and Founder
13+ years in investment advisory, former Head of Singapore Securities Research at Credit Suisse, and a top ranked Singapore analyst by Institutional Investor from 2016 to 2020.
Imelda Tan
Senior Investment Director
20+ years in institutional equities, former Senior Portfolio Manager at Nomura Asset Management, managing mandates for sovereign wealth funds and pension institutions.
Ng Hui Min
Senior Investment Analyst
15+ years in Asian equities, former Senior Equity Portfolio Manager at Banque Pictet, managing Asia portfolios for ultra high net worth clients, with earlier roles at Capital Group and Credit Suisse.
Goh Lay Peng
Senior Investment Analyst
20+ years across equity research, fixed income credit and portfolio management, former credit analyst at Fullerton Fund Management and portfolio manager at Income Insurance.
Investment philosophy
What guides our decisions.
These principles sit behind how we find, assess and size opportunities. We believe markets can be inefficient and that active stock picking based on fundamental research can add value, especially at the individual security level.
Seek opportunities through deep research
We identify prevailing themes and mispriced investments through bottom up fundamental research, focusing on the gap between market price and intrinsic value.
Diversify deliberately
We prefer diversification across companies, sectors and sources of risk, so that no single position or theme determines the outcome of the portfolio.
Let conviction guide position sizing
Higher conviction, more attractively valued opportunities may receive more capital, while lower conviction or higher risk ideas are held at smaller weights.
Manage risk throughout the investment
We assess business, financial, valuation, liquidity and governance risks before investing and throughout the holding period. We may trim or exit when fair value is reached, or when new information meaningfully contradicts our original investment thesis.
This report is provided by Global Wealth Technology Pte. Ltd. for the use of intended recipients only and may not be reproduced, in whole or in part, or delivered or transmitted to any other person without our prior written consent. By accepting this report, the recipient agrees to be bound by the terms and limitations set out herein.
You acknowledge that this document is provided for general information purposes only. Nothing in this document shall be construed as a recommendation to purchase, sell, or hold any security or other investment, or to pursue any investment style or strategy. Nothing in this document shall be construed as advice that purports to be tailored to your needs or the needs of any person or company receiving the advice. The information in this document is intended for general circulation only and does not constitute investment advice. Nothing in this document is published with regard to the specific investment objectives, financial situation and particular needs of any person who may receive the information.
Nothing in this document shall be construed as, or form part of, any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities. The data and information made available in this document are of a general nature and do not purport, and shall not in any way be deemed, to constitute an offer or provision of any professional or expert advice, including without limitation any financial, investment, legal, accounting or tax advice, and shall not be relied upon by you in that regard. You should at all times consult a qualified expert or professional adviser to obtain advice and independent verification of the information and data contained herein before acting on it. Any financial or investment information in this document are intended to be for your general information only. You should not rely upon such information in making any particular investment or other decision which should only be made after consulting with a fully qualified financial adviser. Such information do not nor are they intended to constitute any form of financial or investment advice, opinion or recommendation about any investment product, or any inducement or invitation relating to any of the products listed or referred to. Any arrangement made between you and a third party named on or linked to from these pages is at your sole risk and responsibility.
You acknowledge that Global Wealth Technology Pte. Ltd. is under no obligation to exercise editorial control over, and to review, edit or amend any data, information, materials or contents of any content in this document. You agree that all statements, offers, information, opinions, materials, content in this document should be used, accepted and relied upon only with care and discretion and at your own risk, and Global Wealth Technology Pte. Ltd. shall not be responsible for any loss, damage or liability incurred by you arising from such use or reliance.
This document (including all information and materials contained in this document) is provided "as is". Although the material in this document is based upon information that Global Wealth Technology Pte. Ltd. considers reliable and endeavours to keep current, Global Wealth Technology Pte. Ltd. does not assure that this material is accurate, current or complete and is not providing any warranties or representations regarding the material contained in this document. All opinions contained herein constitute the views of the analyst(s) named in this report, they are subject to change without notice and are not intended to provide the sole basis of any evaluation of the subject securities and companies mentioned in this report. Any reference to past performance should not be taken as an indication of future performance. To the fullest extent permissible pursuant to applicable law, Global Wealth Technology Pte. Ltd. disclaims all warranties and/or representations of any kind with regard to this document, including but not limited to any implied warranties of merchantability, non-infringement of third-party rights, or fitness for a particular purpose.
Global Wealth Technology Pte. Ltd. does not warrant, either expressly or impliedly, the accuracy or completeness of the information, text, graphics, links or other items contained in this document. Neither Global Wealth Technology Pte. Ltd. nor any of its affiliates, directors, employees or other representatives will be liable for any damages, losses or liabilities of any kind arising out of or in connection with the use of this document. To the best of Global Wealth Technology Pte. Ltd.'s knowledge, this document does not contain and is not based on any non-public, material information. The information in this document is not intended for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to law or regulation, or which would subject Global Wealth Technology Pte. Ltd. to any registration requirement within such jurisdiction or country. Global Wealth Technology Pte. Ltd. is not licensed or regulated by any authority in any jurisdiction or country to provide the information in this document.
As a condition of your use of this document, you agree to indemnify, defend and hold harmless Global Wealth Technology Pte. Ltd. and its affiliates, and their respective officers, directors, employees, members, managing members, managers, agents, representatives, successors and assigns from and against any and all actions, causes of action, claims, charges, cost, demands, expenses and damages (including attorneys' fees and expenses), losses and liabilities or other expenses of any kind that arise directly or indirectly
If these terms or any part of them is understood to be illegal, invalid or otherwise unenforceable under the laws of any state or country in which these terms are intended to be effective, then to the extent that they are illegal, invalid or unenforceable, they shall in that state or country be treated as severed and deleted from these terms and the remaining terms shall survive and remain fully intact and in effect and will continue to be binding and enforceable in that state or country.
These terms, as well as any claims arising from or related thereto, are governed by the laws of Singapore without reference to the principles of conflicts of laws thereof. You agree to submit to the personal and exclusive jurisdiction of the courts of Singapore with respect to all disputes arising out of or related to this Agreement. Global Wealth Technology Pte. Ltd. and you each hereby irrevocably consent to the jurisdiction of such courts, and each Party hereby waives any claim or defence that such forum is not convenient or proper.