Investment Process

  • Corporate finance and industry network of professionals
  • Bloomberg scanning based on value parameters and price movements
  • Leads from existing investments
  • Identify value and key events
  • Identify due diligence issues and risks
  • Develop internal financial models
  • Identify market assumptions driving the valuation discount/premium
  • Understand catalyst
  • Intelligence collection within the industry and the financial markets
  • External advisers to provide industry expertise
  • Use of consultants if there are corporate governance or other specific risks
  • Verify initial findings
  • Identify further risks and opportunities
  • Identify corporate finance events that we can facilitate
  • The investment process continues post the initial investment and positions are added to if confidence increases
  • Positions are reduced or exited if further work uncovers new issues or changes the assessment of key issues
  • Whilst high conviction is a key part of the strategy, remaining open to new information and changing circumstances is also an essential part of the process
  • Identify substantial risk concentrations
  • Consider further hedging options for specific risks
  • Targeted events are actively monitored for every investment
  • Initial investment limit of 20% of NAV for longs and 10% for shorts for high conviction trades
  • Maximum limit of 35% of NAV for longs and 15% for shorts
  • Stress test analysis to review potential losses from macro events
  • Ensure liquidity is compatible with investors’ redemption rights