Our investment beliefs
Our core investment philosophy, Growth At a Reasonable Price (GARP) is based on the conviction that buying companies that can produce above-average growth in earnings, revenues and cash returns on invested capital, will outperform over time.
We believe that, over the long-run, those companies that have good, open-ended growth opportunities, high quality management, and capital to maximise those opportunities will provide superior returns for investors.
We believe that major indices will only partially capture the growth opportunities present in equity markets; our approach is therefore highly active as we will apply our strongest convictions into portfolios, this will ultimately translate into high active share.
Proprietary research is at the heart of our stock selection process, to this end we have designed an organisation combining the role of portfolio manager and analyst. In our view this dual role greatly enhances our research value, increasing investment reactivity in translating research outputs into portfolios. It also enables us to better capture undervalued growth companies.
In assessing the full potential from companies, we combine a judgmental and quantitative approach with an emphasis on meeting company management. We focus on a variety of factors such as growth in revenues / earnings, margin levels, return on invested capital and strong balance sheets. We also pay close attention to absolute and relative valuation indicators ( for example PE, EV/EBITDA).
Our portfolio construction reflects our convictions and is applied within a robust risk framework. Throughout the entire investment process, our portfolio managers are supported by a dedicated team of portfolio engineers who ensure that the portfolio structure and risk profile is in line with the strategy's investment objectives.
Risk monitoring combined with a strict sell discipline are key to our approach. While our investment philosophy is based on a longer-term investment horizon, rationale for holding a stock is constantly reviewed and we maintain a strict sell discipline every holdings.