Our investment process is rigorous and highly disciplined. It is a fundamental, bottom-up, evidence-based process that seeks investment opportunities based on objective fundamental research.
We invest on an absolute return basis and are unconstrained by index weightings, whilst focused on ensuring diversification and managing common business risks.
We typically own 35 equities within our Global Equity portfolio, all of which have a minimum upside of 25%-35% when purchased.
All our analysts are generalists. Stocks are reviewed using a combination of individual analysis and an iterative team process. We believe in diligently implementing a consistent approach and methodology.
The range of experience and different perspectives, combined with lateral thinking and an open mind, creates advantages in understanding and analysing a company.
We focus on three criteria for security selection: Quality, Business Fundamentals and Valuation.
– Our definition of Quality is one of our key defining characteristics. When evaluating Quality, we focus on the efficient and effective allocation and return on invested capital, the stability of the industry in which the company operates and the predictability and consistency of their recurring revenue stream.
– Business Fundamentals is where we identify the ability of the company to hit or beat market expectations.
– Valuation is a function of our Discounted Cash Flow Analysis, within which there is a consistency of discount rates applied.
We also have a strict sell-discipline which is consistently adhered to. It is these bottom-up buy and sell decisions that drive portfolio construction.