We believe that, in the long term, there is a high correlation between the success of a business and its share price performance. As such, short-term volatility presents us with opportunities, particularly when prices deviate from business fundamentals.
Rather than making regular trades in and out of positions, we tend to have low portfolio turnover, and look for investments where the underlying business has strong compounding dynamics.
We aim to operate in a counter cyclical/contrarian manner when making investments. We believe this approach both increases returns and resilience.
We seek to invest in great businesses, but believe valuation is of utmost importance. Even the greatest business can be a poor investment if made at the wrong price.
Take a Holistic Approach
We map out stakeholder structures across companies and countries, to gain a deep understanding of the incentives driving behaviour.
We devote significant time and resources to meeting stakeholders including suppliers, customers and competitors, in order to enhance analysis.
We use our network and local partners to complement our own work, in order to gain a better understanding of the developing dynamics in each of the countries we invest in.