Our strategy to seek investment opportunities that are overlooked or misjudged by the market, more specifically aims to uncover companies with clearly defined business models that show sustainable long-term prospects in the Asia-pacific region. To find them, our analysis focuses on the balance sheet, cash flow and earnings, and catalysts.
In our appraisal of the balance sheet, we search for hidden or overlooked asset values. From our forecasts on cash flow and earnings, we look for evidence of strong cash generation capabilities. Upon identification of catalysts, we seek valid justifications for the market to re-appraise or re-rate the investment. An investment candidate must meet at least two of these criteria; it’s the combination that indicates a higher chance of outperformance.
With an investment horizon of three to five years, we do not attempt to outperform the market in the short term, rather we acknowledge that discipline, patience, and the right temperament are the keys to superior long term investment performance. Market inactivity does not scare us. However, this does not imply that we are idle, on the contrary, we are always on the hunt for the right opportunities within the right investment price range.