The Firm is a fundamental value investor, with an opportunistic, concentrated and long-term approach focused on international securities.
• Fundamental. The Firm will seek to understand the businesses in which it invests from the unit economics up to the incentives of the top management, its owners and the industry they operate in.
• Value. The Firm will be a buyer of securities for clients only when it can rationally determine those securities are for sale at a substantial discount to their worth on the basis of the cash flow they generate and are likely to generate in an uncertain future.
• Opportunistic. The Firm will remain flexible to invest where the opportunity exists and will only invest client capital if there is an outstanding opportunity that meets the firm’s investment hurdle. In the event the Firm cannot find securities that meet its investment hurdle the Firm will hold cash or cash alternatives until the right opportunity can be found.
• Concentrated. The Firm will target a concentrated portfolio of 10-15 investments whose performance is deemed to have a low correlation with the broader business and market cycle.
• Long Term. The Firm will take the approach that it is a minority owner of businesses rather than a trader of stocks.
The Firm will avoid the use of leverage at the portfolio level so as to never be a forced seller of undervalued securities.