Constant idea generation coupled with a well-defined investment universe
Individual idea generation from wide array of sources such as research reports, conversations with industry experts, internet forums, thematic trend study, top-down macro-analysis
Basic screen to ensure companies fit within our investment universe (e.g., market capitalization above $3B, geography and sector considerations)
Out-of-the-box thinking to identify new investment strategies or ideas that go against the status quo or market consensus
Special focus on tailwinds for ESG focused sectors and companies
Extensive research to determine fundamentals of company
We look for solid evidence of business advantages with driven leadership. Questions we ask are: Is there a strong economic moat Who are the main competitors and why do we choose this company over others? What is the growth story? Key risks?
Macro and industry trends providing headwinds or tailwinds
Upside potential at current price?
What is the company’s environmental impact and social impact? How is the corporate governance within the company?
Quantitative analysis to determine future value of company
Phase 1 analysis:
Is the current growth sustainable?
What are its revenue drivers and margin drivers?
Financial statements forecasting
How is the company’s Free Cash Flow position?
Phase 2 analysis:
New and alternative data analytics
Discounted Cash Flow valuation and Comparables analysis using multiples
At least 20% upside at current price
Constant monitoring of portfolio with disciplined sell strategy
Price exceeding valuation resulting in realisation of returns
Changes to original assumptions resulting in change of valuation
More attractive competitor due to changes in economic moats
Monitoring of volatile stocks influenced by non-traditional information sources and irrationality