The fund follows a contrarian strategy, whereby the manager looks to find companies that are under-priced relative to their quality. The team invest in stocks where the potential upside is greater than the potential downside, generally because a substantial amount of bad news is already priced in to the stock. The accounting background and experience of the investment team is important to the approach as it allows the team to identify and define the “correct” quality of the company and its fair value.
We like the fund as it offers a differentiated approach that invests in underappreciated companies that many investors miss, and avoids the over saturated stories which have already achieved substantial growth. The approach has resulted in an excellent return profile over time, and the team have shown clear ability in adding outperformance through stock selection.