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Could you please provide clarity around your method to understand the extent of the opportunity, rather than to rely on the instrinsic value?

- FAQ, Investment Philosophy & Process - Tagged With:

“The lack of focus on intrinsic value but rather attempting to understand the extent of the opportunity – we are still quite unclear around this and would like further clarity as to how this is done?” To understand the thinking behind the method we follow (which is quite simple relative to intrinsic value) you have […]

Do you employ a strategic and tactical asset allocation approach to your research?

Both. We have defined strategic asset allocation buckets for each of our funds – the strategic allocations vary by level of conviction. The tactical overlay is represented by changes in levels of conviction and therefore translated to the actual allocation.  The conviction buckets are defined at: Portfolio Construction (Steps 04 & 05)

How many investments do you think an analyst should cover at any point in time?

In Step 02 of our six step investment process, we apply a “best effort into best ideas” philosophy and will therefore by definition not for example have a ranking table of stocks. We have various screens and data visualisation tools to highlight potential investment ideas.   A key objective of our process is to find enough good […]

Idea Generation (Steps 01 & 02)

Our competitive advantage is that our investment team has a number years in the market with a diverse range of relationships and experience and as a result can often spot ideas or trends before less experienced managers. We have a number of sources of leads for company specific investment ideas: Quantitative models combined with data […]

Refine Idea (Step 03)

Using a multi-level process, we refine our ideas by assessing the value proposition, understanding the potential business investment and its earnings drivers, and then looking in more detail at layers of research within the company itself. The following table outlines the three levels of refinement: Level Description 1 With level 1 our analysts assess the […]

Portfolio Construction (Steps 04 & 05)

Once a particular investment idea has been approved by our portfolio management team it is then considered for inclusion into the relevant funds. This is the start of Portfolio Construction which is the 4th step of our investment process. Rob Spanjaard has final responsibility for the construction of the portfolios. We do not believe investment decisions through an investment committee is an effective method to implement decisions.

Assessment of Decisions (Step 06)

- Investment Philosophy & Process - Tagged With:

Portfolio Dashboards 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:   Sell Discipline 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 […]