Our philosophy
Our intrinsic value philosophy is based on fundamental research.
It involves looking for three key factors when identifying good businesses that we believe will grow shareholder value over the long term. Intrinsic value is the present value of a company’s total expected net cash flows.
Good business economics
We assess a company’s growth opportunities, its ability to generate cash and sustainable returns on invested capital, its capital structure, its sustainable competitive advantage and the strengths and weaknesses of the industry in which it operates.
Good business economics
Quality management
We place significant emphasis on the management team who are responsible for capital allocation decisions. We consider their track record, how they operate the business, their personal traits, and whether or now they are disciplined stewards of shareholder capital.
Quality management
Favourable valuations
We make sure that we aren’t overpaying for the value we are receiving by understanding the intrinsic value and the range of possible outcomes.
Favourable valuations
We align with a framework of responsible investing when identifying investment opportunities.
Responsible investing
We understand the important role we play as stewards of investor capital and fine balance between various institutions and stakeholders within the value chain. We aim to drive value for the benefit of consumers, government and society as a whole. We also aim to ensure that capital providers (equity and bond investors) are sufficiently rewarded for the capital provided.
