Moneyweb explains our approach and why we have competitive advantage.
Your choice of investment manager affects your outcome
We believe that investors need to take the time to understand their chosen investment manager’s philosophy and approach so that their thinking is aligned. This can help prevent you from making rash, short-term decisions based on the latest news in the market, which may undermine your long-term outcomes.
Recent Moneyweb articles explain our approach
Moneyweb recently ran a series of articles about Denker Capital, highlighting the key differentiators that we believe are important factors in choosing an investment manager. The series focused on our local equity team, the Denker SCI Equity Fund (renamed in January 2019 from the SIM Value Fund), and how investing with Denker Capital broadens your investment universe. Below we highlight two of these articles.
A. Value and intrinsic value are not to be confused
While we believe the relationship between price and value is the key to investment success, it is not the first or only thing we look for in an investment. Our investment philosophy is centred on achieving three things:
- Invest in a business with good economics where there is a moat or competitive advantage.
- Ensure that the business is being run by an experienced and trustworthy management team.
- Buy a business at a discount to its intrinsic value.
B. High-value opportunities in the small-and mid-cap space give nimble investors an edge
This article explains one of the advantages that smaller, more nimble fund managers like Denker Capital have – a bigger investible universe with the ability to take sizeable stakes in smaller-cap companies. At Denker Capital, we like to identify high-quality companies and employ concentrated stock-picking to buy at a discount to net intrinsic value. It is hard for our competition to replicate these holdings. We believe a lot of negative news is already priced in and we’re starting to see many more long-term opportunities in smaller caps.