Investment Process

We buy companies not stocks

We believe the key to success in the smaller companies market is to identify individual companies which are likely to outperform the overall market over time. We use a research-based ‘bottom-up’ stock picking style to find well-priced companies with an improving profit growth profile. At the same time, we pay particular attention to the quality of a company’s earnings and management (amongst other factors) in order to minimise downside risk.

Our four step investment process is a robust and repeatable process. Insights from fundamental research are used to construct low turnover, high conviction portfolios.

500 - 600 companies
1.Idea
Generation
  • Analysts given discretion to prospect broadly for new ideas
  • Emphasis on qualitative analysis through field work and development of proprietary information network
80 - 120 companies
2.Fundamental
Analysis
  • Investment analysis
  • The company scorecard determines the portfolio stock weighting
30 - 40 companies typically
3.Portfolio
Construction
  • Scorecard ranking
  • Meeting portfolio return criteria
  • Liquidity
  • Diversification impact
4.Portfolio
Monitoring
  • Maintaining follow up meetings and reviews with management
  • Compliance managment risk process