Investment Style
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