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
