This is the first time we have met the team. The strategy has a quality value approach with the companies they invest in having better free cash flow vs the index, and lower levels of debt. Therefore, they believe they are investing in companies which offer the potential for higher returns with lower levels of risk.
If investors look at their fund, the management team believe they will see a portfolio of leaders; these will likely be in the top 3 of their peer group or are niche businesses. These are businesses which are more likely to survive a downturn, and if anything, grow. The team like management they can trust and are prepared to hand capital back to shareholders.
The market does misprice good businesses and this provides opportunities for them. They are overweight industrials which tend to be more robust with high repeat income streams. They are also investing in green energy where they see long term structural changes happening….read more