The tailwinds behind the growth of the developing world are incredibly powerful. We believe the lion’s share of this opportunity will accumulate to the best quality companies. For us a quality company is one that has a durable and sustainable business model, a robust balance sheet and proven management teams displaying strong governance practices where we as minority shareholders will be treated fairly.
Implementing our approach
In our view, the greatest beneficiaries of emerging market growth will be the highest quality companies. We are bottom up investors investing in high quality companies with the aim of growing the absolute value of our client’s capital over time. As such, benchmarks have no influence on our investment decisions.
Shareholder returns are a function of the long-term compounding ability of a business and the price paid. We are happy to become owners in a business at a price we consider fair but will avoid investing in if we consider it to be overvalued. This is true no matter how high the quality of that company.
It is not the ability of a company to generate profits now that’s important, but the sustainability of these profits. Companies can display elevated returns in the short run, but over time the forces of capitalism tend to compete these returns away. We invest with a long term horizon. As such, our analysis of a company’s quality focuses not just on its current economic moat, but crucially its sustainability over time.
All our investment and allocation decisions are rooted in company level analysis. Our process is robust, repeatable and subject to peer review. We apply it consistently executed across all strategies.
To find out more
download our owner’s manual