Bank of Ireland Asset Management (BIAM) finished 2005 at the wrong end of the performance tables, with a return of 18 per cent.
However, an examination of its performance over the longer term paints a rather brighter picture.
In fact, BIAM is the top-performing fund over the five years to the end of January 2006, and is ranked third over the past 10 years.
Kevin Walsh of BIAM says that it has a "very clearly defined investment philosophy - active, concentrated, disciplined".
After carrying out extensive research, it takes a concentrated position, which means that it invests in a relatively low number of stocks - in the region of 80 international stocks, and 25-30 Irish stocks.
The company takes a "bottom up" approach to stock selection, and concentrates primarily on medium to large companies.
Mr Walsh explains that "owning the right company" is crucial, and compares BIAM's investment style to that of Warren Buffet.
"We buy good quality blue-chip companies that we think are undervalued," Mr Walsh says.
He explains that this strategy worked against BIAM last year as "the rally was to a certain extent led by small-cap companies We've typically invested in the other end of the spectrum."
Mr Walsh also points to what he calls "emerging market euphoria" as a contributory factor to their underperformance in 2005.
"We do have exposure [to emerging markets], but at the lower end of the range."
