The process that guides us
Focus on the industries that we have studied and value chains that we understand to narrow the investible universe.
Our positions are limited to 6% for any one position to mitigate possibility of unknowns. Turnover of below 25% for core mandates, but can be higher during times of extreme dislocation.
Value the company using conservative estimate of discounted free cash flow.
We use rigorous fact gathering and management meetings to understand the key drivers of businesses. We hire consultants to verify management communication and expand universe by meeting companies at conferences. We make use of analysts to establish facts not buy and sell recommendations.
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.