We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world. Using a focused, patient and considered approach to finding simple investment ideas produces the best environment for creating that long term wealth.
Our experience has shown us that while the market is largely efficient, it can, and regularly does, misprice a small proportion of companies. This mispricing can arise as a result of any number of reasons, but is most often associated with disruptive or cyclical change, new information which is misunderstood by the market as having a permanent impact when it is in fact transitory, or just because they are operating in a sector out of favour with investors.
Our unique process is based on scanning the world for those companies (hence the radar in our logo), discovering the associated valuation anomalies and extracting value from them. We buy good businesses at a good price; businesses that we believe are being valued differently to their long term intrinsic value, but will return to their correct value over time.
‘Anomaly noun anom·a·ly \ə-ˈnä-mə-lē\
Deviation from the common rule: irregularity; something anomalous: something different, abnormal, peculiar, or not easily classified.
As we look for investments and hold them – sometimes longer than 10 years – we act like proprietors when forming our views, ignoring market opinions and current stock prices to see the intrinsic value of companies that will be unlocked over the long term. We then compare this to the current share price. We believe in being a patient investor, one that has conviction, one that sees opportunities where others only see risk. We determine if an opportunity exists via our deep fundamental research. We only invest in what we know.
We construct our portfolios in accordance with our philosophy that ‘no conviction = no investment’. We selectively assemble the holdings according to the individual risk/reward proposition of a specific business, rather than an artificial construction to satisfy one or other market index or benchmark. The result is a ‘best ideas’ portfolio that has true conviction, which is truly concentrated and truly different.