The Strategic Global Fund employs a value-oriented approach to stock selection, which is research intensive and risk averse.
As a way of narrowing our potential investment universe, we invest primarily in the securities of companies that are in transition in some manner. We seek out situations in which the market provides the opportunity to arbitrage what an emotional investor will pay for, or sell, a business versus its underlying intrinsic value. The combination of a selective approach, rigorous research, attention to detail and a prudent understanding of risk, creates our opportunities.
We maintain the freedom to invest where we expect to reap the greatest returns relative to assessed risk. We are not limited to local stock exchanges and instead focus on international equities, wherever we find the most compelling value. Our world view maximises our universe of available opportunities.
Rigorous, Proprietary Research
We aim to minimise investment risk by making investments with a high margin of safety. This means identifying companies with quality earnings trading at bargain prices. In assessing a potential investment in a company, we typically conduct a thorough financial analysis to determine if there is a disparity existing between the company’s intrinsic value and its market value.
We believe that an investment approach that emphasises intrinsic value has the ability to achieve consistent returns and safeguard capital regardless of market conditions over the long term.
With its long term investment perspective, the firm favours company strategies that increase the value of company shares over a longer time horizon, with less of a focus on short term market driven price performance. This long term approach allows us to pursue those companies or industries that may temporarily fall out of favour with the broad investor universe but where long term value can be realised.
Investment, Not Speculation
Due to our ability to identify opportunities to invest in great businesses with long-term potential at attractive prices, it is unnecessary to engage in speculation in the form of unlikely long-shots.