Why We Do It

Our Investment Philosophy

  • Crises, which take place frequently, create opportunities for investment in large and strong franchises at extreme discounts, given investors’ tendency to exit at any cost

  • More importantly, in country wide crises, the large asset price drawdowns are most often followed by forceful rallies, allowing for a very dependable investment cycle

  • This reversion to the mean is a much more repeatable occurrence in relation to country wide crises than to investments in single companies in normal conditions

  • Extremely discounted companies in normal condition investing frequently become value traps or go out of business whereas countries typically recover; only a very small minority become failed states1

To learn more about Helm’s rationale for crisis investing, please read our research paper The Lost Decade for Buy-and-Hold Emerging Market Investors.

1 As former Citicorp Chairman Walter Wriston used to say “countries do not go bust”. Chairman of Citicorp 1970 – 1984.