Investment Process

Our process of finding stocks for our portfolios is straightforward:

  • Our wider universe is screened on the basis of liquidity and/or market cap to provide an active universe of stocks.
  • This active universe is screened further on the basis of profitability, return, debt, valuation and other metrics to generate stock ideas for further analysis.
  • Independent due diligence is carried out on these stocks/companies including direct interaction with the company.
  • In-house models allow us to determine a valuation for these stocks.
  • Research notes are written; investment cases are discussed; and additional work is carried out addressing issues raised.
  • It is then at the lead manager’s sole discretion whether or not a stock is bought for the portfolio. Investment decisions are made subject to continual portfolio and macroeconomic risk management.
  • Stocks may be sold for the following key reasons:
  1. Valuation
  2. Corporate governance issues
  3. The investment thesis is no longer intact (i.e. profits warning)
  4. Macroeconomic risks