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 01, our analysts assess the key value proposition through short reports or high level discussions.
2	Once a particular idea has passed the level 1 filter,  analysts perform a detailed company study.  Particular focus is placed on the key business and earnings drivers.
3	Level 03 is a detailed assessment of a particular idea and will cover any / all of the following: Exposing potential flaws Testing assumptions Scenario analysis Management interaction Discounted Cash Flow Modelling

The entire team is responsible for keeping up to date with current events, trends and news by extensively reading and keeping tabs on the pulse of the world economy. This absorption of information from a variety of sources leads to the generation of investment ideas that are then researched further.

Each investment idea undergoes several levels of research. At each level there is extensive interaction within the team to determine the viability of the investment idea and then it is either rejected or passed on to the next level of research, where the investment idea undergoes further levels of scrutiny. Each level of research makes use of many sources of information including primary in-house research, broker research, team opinions, company publications, management interaction and a variety of other sources.

Investment Process