The team invests in strong franchises and businesses with strong balance sheets that are undervalued. These are typically companies which can deliver capital growth through increases in dividends or share price appreciation. The rigourous balance sheet analysis and avoidance of companies with high leverage makes this fund relatively defensive.
As value investors, the concern of a value trap if of the utmost importance. As a result, the managers are very cautious to assess the fair value of assets. By meeting with management, they will try to ascertain if the potential for change is there within their investment horizon of 3-5 years.