Our Investment Approach
We have a tried and tested method of investing that mixes the qualitative with the quantitative.
Our focus is in Emerging Market geographies, particularly in the BRICS economies, which we believe possess the structural attributes to produce a broad range of high quality, secular growth companies over the medium to long term.
We are biased towards growth and quality, with specific focus on durable competitive advantage and a company’s track record in adapting to changing circumstances.
Our investment philosophy is based on:
Active investing in emerging markets
Compounding core investments over meaningful time periods
Nimbleness, both long and short, to generate alpha
Original thinking and in-depth analysis
First-hand knowledge of the markets in which we invest
Bottom-up stock picking
Searching emerging markets for companies that can compound returns over meaningful time periods, with a particular leaning towards growth and quality companies.
Searching emerging markets for short-term trading opportunities. Triggered by price action and captured by proprietary models.
There are various attributes that the Portfolio Managers are looking for when they invest, which includes:
High ROE that is stable or improving
Strong free cash flow conversion – short working capital cycles are preferable, as are capital-light, intellectual property
Strong brand or leading market positioning
Scalable business model with the ability to grow margins on fixed overheads
Predictable and diversified revenue streams
Limited regulatory change to impact the business negatively
Visibility and reliability of earnings
Balance sheet strength that supports the business model
Trusted and proven management team
We believe that all emerging markets share similar characteristics, adjusted for local knowledge and nuances.