We only make an investment when we are clear how it will create value for the fund
We seek to invest in world-class businesses with durable competitive advantages. These are companies that have a competitive moat, are well-managed and have a demonstrated track record of creating shareholder value. It is only on rare occasions when these companies sell at a discounted price, requiring us to be vigilant and decisive when such opportunities arise.
Our investment judgment is based on our own detailed analysis and research, and our view is often different from the views of the market. Our pre-investment work identifies the investment opportunity and the key drivers to unlock the underlying value.
The five steps we follow to making investments are:
- Identify a situation in transition that is likely to lead to investor misunderstanding
- Assess investor sentiment
- Understand the industry characteristics (cycle and quality)
- Conduct a financial analysis to determine the intrinsic value of the company
- Make the purchase ensuring it is at a bargain price