Investing

We are risk averse, return-on-investment focused, and tax conscious.

All intelligent investing is value investing: Making sure you get more out of your investments than what you pay for them.

We only invest in companies and situations that we believe we understand well enough. This means that we can form an informed opinion about the risks, future prospects, profitability and eventually value of the companies we invest in. It also means that we often say “no”, even if we originally look for pricing errors on a very broad front.

We construct our portfolio with a limited number of positions and varying weights. We make changes from time to time to control risk, or to go after even more attractive opportunities. We are risk averse, return-on-investment focused, and tax conscious.

We manage risk by staying within our circle of competence, committing capital only in the presence of margin of safety, and maintaining an appropriate diversification. Our extensive knowledge of history and healthy scepticism have their uses, but there is no substitute for thinking through each investment separately.

No investor can fully escape bad luck, but we try to reduce our mistakes by keeping in check our own biases and other shortcomings in human decision-making. Hence, we apply a bespoke investment process designed with our own personalities in mind. Finally, we expect our timeless investment principles to position us well whatever the future might bring.

We try to keep on open mind, explore, trial and learn. No matter how successful we’ve been in the past, our greatest motivation comes from how good we can become in the future.

We are committed to responsible investing that takes environmental, social and governance (ESG) considerations into account in our investment decisions and portfolio management. These issues are integrated within our investment practices, with special emphasis on shareholder friendly governance. Due to the size, nature and scope of our activities we do not currently consider EU 2019/2088 sustainability risks (”PAIS”), but aspire to do so in the future. Our compensation practices are in full alignment with these principles.

Our corporate governance principles are rooted in our investment strategy, which focuses on international publicly listed equities. We cannot act as activist owners due to our limited AUM, risk management practices, and sometimes limited holding periods. We also cannot meet with all of our holdings, nor can we partake foreign shareholder meetings. For these reasons we do not publish an annual review of our corporate conduct.

However, we are happy to provide further information on our principles of responsible investing and corporate governance, and related conduct to both interested existing and future clients.