We aim to generate absolute returns with a low risk of capital loss over the long term.

We believe in keeping it simple, stick to the basics... fundamentals, fundamentals, fundamentals!

• Fundamental value orientation – bottom-up analysis with top-down industry work.
• Identify pockets of structural inefficiency – material variances from intrinsic value with an attractive valuation relative to the underlying quality of a company.
• Short selling as a primary source of alpha – absolute return generation as opposed to position/market hedges. Outsized returns have been generated on the short side.
• Intensive research process – creativity and unique primary research drives independent thinking and high conviction ideas.
• Concentrated portfolio of best ideas – allocating time and resources to the most compelling ideas.
  

Our investment process is firmly rooted in fundamental analysis. Our approach is predominantly bottom up and sector or theme specific.

Every company is different and influenced by its own unique factors, hence the need for in-depth research and analysis, regular management contact, site visits, broker and company presentations, etc. We spend a considerable amount of time 'on the road' towards achieving this end. Special attention is devoted to companies that are either under-researched or not at all covered by the investment fraternity.

Our research is not limited only to listed companies. We continuously develop our knowledge and relationships with many unlisted companies, who are either trading partners or competitors with their own listed counterparts.

Our strength lies in our ability to integrate the information which we continuously gather in order to formulate medium to long term investment ideas for these funds. We maintain our own financial models on most of the listed companies. Because they form the backbone of our decision making process, these models are updated and enhanced regularly.

The fund’s investments range from large to medium and small, liquid, semi-liquid and illiquid counters. Portfolio 'churn' is low. Significant positions may be taken in individual shares from time to time.

Derivative structures are employed to overlay the portfolios with further protection and to optimize the risk to return expectations of specific positions. The use of stock-specific shorts is employed to provide further downside protection from market risk.