Our Investment Philosophy
We Invest In Cyclicality
Industries, countries and categories of stocks subject to pricing dislocations are often an attractive source of market inefficiency. We complement a bottom-up focus on risk vs reward with a macro framework for idea generation.
The natural cyclicality of some industries can cause excessive fluctuations in share prices, especially in the small- and mid-cap universe. We see this volatility as an opportunity for long-term capital allocation, rather than a risk: fundamentally sound companies become oversold due to a mix of market forces, creating compelling buying opportunities. Equally, fundamentally inferior businesses become overbought thanks to short term favourable conditions, creating room for opportunistic short selling.