Investment Process

We base our investment decisions on the following key factors:

  • Sound Management — We avoid the many small caps that are run principally for the benefit of directors
  • Strong market position — We seek smaller companies with good IP and sufficient market scale to achieve competitive edge and be attractive to potential acquirers
  • Solid operational and financial controls — We seek companies that adopt conservative accounting policies and where we can easily understand the key risks both operationally and financially
  • Cash generation — We believe that the true strength of any growth company is evidenced by its cash generation and ability to reinvest for future growth
  • Potential for improved profitability and dividend payouts — We seek investment in companies capable of achieving superior growth in both profitability and dividends compared to market expectations “Seeking attractively priced growth companies with the potential for share price re-ratings during the course of the economic and market cycle”