Investment process

we believe client portfolio management is a process, not a destination

Focus
  • Focus on the industries that we have studied and value chains that we understand to narrow the investible universe

Research
  • rigorous fact gathering and management meetings used to understand the key drivers of businesses

  • hire consultants to verify management communication

  •  expand universe by meeting companies at conferences

  • need to understand value chain of suppliers, customers and competitors

  • Make use of analysts to establish facts not buy and sell recommendations

Positions
  • Positions are limited to 6% for any one position to leave possibility of unknowns

  • Turnover of below 25% for core mandates, but can be higher during times of extreme dislocation.

 

Dream team
  • our universe of buyable businesses given an opporunity in valuation

  • we Buy dream team companies when they are at a discount to their intrinsic value

value
  • Value the company using conservative estimate of discounted free cash flow

  • understanding you will approximately right and precisely wrong

  • Margin of safety can be lower for higher quality businesses

portfolios
 
  • Portfolios are made up of the best 35-55 risk-adjusted opportunities from the dream team