Riviera Investments manages assets from high-net-worth individuals and family offices. We have invested in multiple asset classes of the market including venture capital, hedge funds, private equity, and the global stock market. Our primary focus is achieving long-term capital appreciation while mitigating risk.
With multidisciplinary academic backgrounds, high tech sector work practices, and investment experience, we have developed a sharp sense and deep understanding of the dynamics involved in the technology, media and telecom (TMT), and biotech sectors, which we have concluded will be the driving forces of innovation and future economic growth.
Strategic priorities: Technology, Media, Telecom, Biotech
Goals: Protect your investments, grow your wealth, build your future
in our international network
Invest for long-term value
Riviera Investments' philosophy is grounded in a value-oriented mindset, bottom-up fundamental research, and long-term compounding growth effects. For us, a successful investment utilizes the confluence of business fundamentals, valuation knowledge and emotional discipline. This approach allows us to maintain growth even while the market is volatile.
1. Contrarian Investing
We are well aware that the business cycle and company performance often revert to the mean. Thus, instead of chasing after popular equity names, we deliberately separate ourselves from the herd in order to discover those opportunities that, though unfashionable, contain overlooked risk-reward potential.
2. Guarding Against Downside Risk
Capital preservation is our primary priority, followed by capital appreciation. Rather than risks, the volatility of stock prices creates entry points. From our perspective, risk is the possibility of permanent capital loss resulting from uncertainty. To achieve a long-term satisfactory return, we believe the key lies in utilizing our skills and experience to assess risk so as to avoid catastrophic capital loss.
3. Rigorous Fundamental Research
Quantitative analysis, qualitative analysis and management analysis constitute our three pillars of business evaluation. Riviera has found that when these three factors are working in concert, growth inevitably follows.
To mitigate downside risk, we look at balance sheets and cash flow statements before also checking the income statement. We conduct an analysis of earnings, profit margin, return on capital, debt exposure, capital structure, cash flow etc. to ensure that the fundamentals of the companies we invest in are sound.
Pure quantitative analysis creates the possibility of losing sight of a business’s future development. To ensure our understanding of the dynamic between the business and its market, we analyze its business model, rate of change, possible growth opportunities, catalyst effect, and the competitive position it occupies. All of which are inseparable parts of successful company growth.
The makeup of the company’s chief officers creates or undermines the company’s value. We assess a company’s investment strategy, financial leverage, accounting practices, dividends, share buyback policy, related party transactions, ownership, compensation structure, and past execution of company plans. This analysis allows us to determine whether management has managed shareholders’ capital well, or if they are overextending their leverage into sectors that are not a part of the core business.
4. Long-Term Compounding
We invest utilizing a multiyear time horizon rather than monthly or quarterly timeframes. Companies that have a sustainable competitive advantage have the option of reinvesting their capital at a higher rate of return. By investing in companies with high returns on capital, compounding of the initial investment naturally occurs as the company grows. Furthermore, long-horizon holding reduces turnover rate which causes frictional costs which may compromise investment return.
5. Satisfactory Margin of Safety
Intrinsic value is a range of approximate true business value which comes from value of assets and earning power or franchise. A margin of safety arises when a company can be acquired at a bargain compared to its actual value. The wider the gap between a company’s share price and its actual value, the larger the margin of safety. Also, we believe the quality of the business provides a margin of safety, since quality businesses will be worth more over the long term.
6. Avoiding Excessive Diversification
Over-diversification levels out year-to-year variance but will lead to average returns. Truly great investment ideas are rare. Higher long term performance is about sizing the best ideas, which often results in a relatively concentrated portfolio.
Alternative Asset Investment
We invest in hedge funds, private equities, and venture capital. Our selection criteria is comprised of fund manager backgrounds, strategy, performance track records, key term and fee schedules, and corresponding investment processes. Riviera prefers investment strategies that generate returns driven by factors which are not determined by the value of, or correlation with, other asset classes. Thus ensuring that, regardless of the fluctuations in one asset, our other investments will be minimally affected.
Riviera co-invests in start-ups and private companies with like-minded partners. We prefer businesses with ample market size and growth prospects, unique business models or products with a competitive edge, capable entrepreneurs with a complementary team and a market-oriented mindset, along with an explicit exit mechanism.
+ 886 2 2755 6095
12F-2, No. 1, Ln. 160, Sec. 2, Fuxing S. Rd., Taipei 106, Taiwan