Our Investment Approach

We are value investors. This is an investment approach that has a proven history of generating better returns than the market over the long term, but also provides a natural way of limiting potential losses.

Our approach is based on the belief that markets are inefficient in the short term. Within a normal business cycle, asset prices can be substantially different from their long-run true business or intrinsic value. These differences between asset prices and asset values are caused by the collective behaviour of investors acting out of fear or greed. Investors tend to over extend recent asset price trends upwards (in greed) or downwards (in fear). We strive to remain rational, dispassionate and exploit the opportunities that this investor behaviour creates, thereby generating superior returns for our clients.

In order to identify the mispriced opportunities, we follow a sound, systematic and disciplined bottom-up fundamental approach. This means we do not perform any forecasting in our investment process but rather price an asset by studying its long-term performance and risk compensation metrics and by normalising these trends.

As a discipline, we only become interested in buying an asset once we are convinced that we will be generously compensated for the risk we propose to take. Conversely, we only sell an asset once we believe that we have been more than compensated by its return.

In this way, we aim to generate superior returns for our clients with the least amount of risk.