Investment strategy

Our strategy is to only allocate capital to high-quality ideas where we have conviction. Our focus is on identifying businesses with a competitive advantage that are well-positioned in attractive end markets to grow free cash flow, at an acceptable margin of safety to valuation. This is done through a rigorous, repeatable and disciplined quality assessment of company’s earnings, business and management. As part of this we undertake an extensive company visitation program which is important in providing ‘insight’, testing our thinking and developing our highest conviction ideas. We seek to know as much about our companies as possible, with a view to mitigating permanent capital loss and delivering outperformance over the long term. We feel that investors can appropriately diversify their portfolio and enhance returns by accessing the domestic demand thematic within Asia. Looking selectively at rising middle-class incomes in Asia, we have identified an appropriate universe of 40-50 consumer-facing stocks listed on Asian exchanges that we feel may be suitable for the portfolio at the right price.