Diversified Asset Allocated Portfolio
We identify, invest in, nurture and grow a diversified portfolio of companies with corporate synergies and the potential to generate high commercial returns and yield long-term value for shareholders.
Asset Class Diversification:
Investment diversification mitigates portfolio swings as well as both upside and downside potential, thus allowing for more consistent performance under a wide range of economic conditions. The majority of Zuma’s portfolio is invested in established Middle Market revenue generating businesses, with a minority allocation dedicated to Emerging Growth and Seed Stage investments poised to provide financial return though an enhanced understanding of long-term economic, environmental and social trends.
Media, Information Technology & Entertainment
Zuma’s investment approach is based on our conviction that we can combine our market insights, our corporate synergies, our proprietary technology, our culture of information sharing and our unwavering focus on risk management into an ability to deliver performance in all market environments.
Corporate synergy occurs when our portfolio companies interact congruently. Revenue synergies capitalize on to the opportunity of our combined corporate entities to generate more revenue than they might as stand alone companies. For example, when company A sells product X through its sales force, company B sells product Y, and company A decides to buy company B then the new company could use each sales person to sell products X and Y thereby increasing the revenue that each sales person generates for the company.
In media revenue, synergy is the promotion and sale of a product throughout the various subsidiaries of our media division, e.g. films, soundtracks, video games and sports franchise.
Synergy in terms of management and in relation to team working refers to the combined effort of individuals as participants of the team. Positive or negative synergy can exist. The condition that exists when our portfolio’s parts interact to produce a joint effect that is greater than the sum of the parts acting alone.
A cost synergy refers to the opportunity of our combined corporate entities to reduce or eliminate expenses associated with running a business. Cost synergies are realized by eliminating positions that are viewed as duplicate within the merged entity. Examples include the head quarters office of one of the predecessor companies, certain executives, the human resources department, or other employees of the predecessor companies. This is related to the economic concept of Economies of Scale.
Read more about our Targeted Investments.