Our status as an OWNER-MANAGED business specializing in equity investment management, creates a superior enabling environment within which to deliver discernible value to our clients.
The following are the hallmarks of our investment operations:
We invest exclusively in high quality companies. Experience has taught us that high quality companies create economic value by growing their cash flows at a rate in excess of national income for decades at a stretch. As a result, they are less susceptible to cyclical or competitive risk than the majority of companies listed on the stock exchange. In this instance, our portfolio is a reflection of its underlying holdings relative to the market.
We have found that it pays to seek idiosyncratic insights on how companies interact with the economy given that 85% of all published research is based on multiples. Both the concentrated nature of our portfolios and low turnover rates flow from the comfort with which we place probabilities commensurate with hard-earned insights. This investment of our time in curiosity comes directly at the expense of gathering assets. There simply isn’t enough time in the day for excellence at both.
Our investment operations are differentiated by a desire to execute well on what we know and guard against orthodoxy of thought. We are one of the only asset management firms on the African continent to have both an International Research Advisory board and membership to an elite association of global boutique investment firms, Group of Boutique Asset Managers (GBAM). Both bodies allow us to use historical perspectives and global context to inform our thoughts and actions.
Barring personal account trading and investing both compulsory and discretionary savings in our own fund elevates alignment with–and accountability to–client outcomes beyond what ownership and firm profitability dictate.