Investment Philosophy

HOW WE INVEST

Our investment philosophy draws on the extensive markets experience of the firm’s leadership group, combined with insights from world-leading academic and professional studies.

Our Core Beliefs

Corporate Strategy

Effective corporate strategy is the key determinant of business success.

Innovative Strategies

In a world of ever-intensifying competition, innovative strategies are critical to success. Followers get left behind or made redundant.

Innovative Products

Innovative products and services drive market share gains, higher product pricing and superior shareholder returns.

Our Five Key Questions

1.

How special are the company’s products and services? Do they provide the business with a sustainable competitive advantage?

2.

How big is the opportunity? Is it global, regional, national? How fast is the industry space growing?

3.

How good is management?

4.

Can growth accelerate?

5.

Can the business outperform investors’ expectations and drive the share price materially higher?

We Look for Three Types of Companies

Stars

Profitable businesses possessing a multi-year competitive advantage.

Participate in large, often global markets which are growing faster than GDP.

Typical market cap >$300m.

We target an investment return profile of 20% + pa over several years.

Approximately 50-60% of our investments.

Under-researched

Companies which are early in their life cycle, not yet necessarily profitable.

Possessing a clear competitive advantage and strong pathway to growth.

Typical market cap $25m - $300m.

We target businesses with a pathway to +100% investment return.

Up to 30% of our investments.

Turnarounds

Otherwise good quality businesses where the share price has meaningfully declined owing to a “fixable” strategic error.

Typical market cap >$300m.

Targeted investment return profile; +100%.

Around 10% of our investments.

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