- Long-only investing, with no leverage or derivatives
- Absolute returns focus
- Bottom-up investment ideas, with no style, sector, size bias
- Concentrated portfolio of only listed equities: 15-25 stocks
- Long term oriented; target minimum horizon of 3 years but average holding period could be higher
- Focus on what we understand - we could completely ignore some sectors
- No macro or theme-based investing.
What do we look for in an investment
- Long runway for growth
- Sustainable and proven business
- Positive cash flows
- Profitable reinvestment opportunities
- Clean governance accounting practices
- Competent management teams
- Clear incentives and alignment of interests
- Opportunistically, cyclicals or turnarounds with significant margin of safety
Approach to valuation
- Value conscious but not value investors in traditional sense
- Need sufficient margin of safety at point of entry
- We will wait for businesses that we like to come to our buy price
- Strong analysis and assessment of value matters, not debate between value and growth
- Could end up holding substantial cash at times
When would we sell / trim?
- Investment thesis goes wrong
- Valuations too excessive
- Better quality / risk-reward available