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| GENERATING ALPHA — OUR APPROACH |
SOURCES OF ALPHA
Our search for absolute returns, or alpha, begins with the identification of excellent investment opportunities. Our research and investment process combines a top-down and bottom-up approach, based on:
- Monthly macro views
- Detailed company analysis
- Contact with the company management
- Extensive industry research
- Analysis of competitive edge
- Identification of intra-sector pairs using our "10-Point Company Rating System"
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PRAGMATIC APPROACH
We are sector agnostic but tend to focus on stocks and sectors we understand best. Returns are derived from both long and short positions and our investment team is able to react to rapidly changing market conditions to ensure we deliver returns that meet with our stated investment objectives. |
WEALTH CREATORS & DESTROYERS
We look to invest in companies based on an in-depth understanding of their accounting practices. We adopt rigorous due diligence to a company's balance sheet and its respective accounting measures to ensure they remain consistent and free from distortions such as pension accounting, depreciation, asset mix and inflation.
Based on the findings of our forensic accounting analyses and depending on whether they have higher or lower cash flow compared to their cost of capital, we classify companies in one of two categories; "wealth creators" or "wealth destroyers". |
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