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Please take note that the site you are about to access is intended for international institutional investors only and is not permitted for retail investors nor any South African institutional investors. The information contained on the site is for information purposes only and does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe for or purchase any particular investment. This website is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under applicable law.

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OUR PHILOSOPHY

We believe that excess returns can be achieved by investing in 40 to 80 undervalued companies with the following characteristics:

  • Quality business models - We firmly believe that the only way to achieve sustainable excess returns is to invest in companies that have a sustainable competitive advantage and proven management teams with a history of strong capital allocation, ensuring future operating cash flows are deployed in a manner that will ensure excess returns going forward.
  • High margin of safety in their fundamental valuations - Our analysts use various valuation methodologies including discounted cash flow (DCF), historic company multiples (price to earnings, price to book etc.) and sum of the parts calculations to calculate a company’s fundamental value. These valuations are based on conservative, through-the-cycle, normalised earnings and cash flow forecasts.
  • Governance standards that meet our minimum requirements - We use a proprietary framework to analyse the governance structures, policies and practices of all companies we consider investing in for our clients. We believe it is not sufficient to discount governance risks into fundamental stock valuations – stocks where the governance tail risk is significant should rather be avoided completely.