INVESTMENT PHILOSOPHY

THREE INVESTMENT BELIEFS

Underpinning our investment philosophy is our belief that the intrinsic value of underlying businesses is not always reflected in the market price of their securities.

We believe undertaking detailed fundamental analysis allows us to identify securities trading below their intrinsic value and with sound long-term investment fundamentals. It is these companies we believe are more likely to generate strong investment returns.

Incorporated in our investment approach is a strong focus on managing risk.

  • We consider risk to be the permanent loss of investors’ capital which can come about from investing in companies we do not understand.
  • Knowing what we invest in means gaining a thorough understanding of a company’s key business drivers.
  • To understand the key drivers of a business, we undertake intensive company analysis involving:
    • senior company management
    • industry factors, and
    • competitive and industry sources.

“Our view is that equity markets can be emotional, backward-looking and inefficient, particularly in small caps where there can be a lot of market ‘noise’. We believe this can provide opportunities for prudent investors who make considered investment decisions based on thorough analysis.”

Robert Frost
Head of Investments