We have proprietary developed monitoring tools which integrates with our fund administrator to give us daily insights into the portfolio. Here are a few examples:
We apply a consistent and unemotional view to both buy and sell decisions.
Given that we are an owner managed business there is no career risk affecting our investment decisions. We are therefore keen to recognise mistakes early and admit that we were wrong. This is part of being an active manager.
We sell our investments when we no longer see value in the position. This could be as a result of the following :
- Company has reached a value where we don’t see further growth opportunities (harvest)
- We are concerned about internal management issues ie key man risk
- Company’s competitive advantage and sustainability has been eroded
- Company quality of earnings is being eroded
- We would also sell a company as a result of industry changes that will impact negatively
- We would sell where the industry and company are experiencing headwinds