We are active, fundamental investors. We focus on investing in companies with sustainable earnings per share (EPS) growth, high quality attributes and sensible valuations.
Within the Global Resources sector, we believe that there are three main points that differentiate our investment style:
• we do not attempt to forecast short term commodity prices
• we seek out only the best quality companies to represent each sector or commodity type
• we spend a lot of time visiting companies and their key assets.
We focus on sustainable earnings per share growth
We believe strong earnings per share growth has a positive effect on a company’s long-term share price performance. When selecting stocks we scrutinise a company’s potential to generate sustainable earnings per share growth over the medium- to long-term, assuming sensible commodity price and currency assumptions.
We favour quality companies
Balance sheet strength, proven management, prudent corporate governance and transparent accounting policies are among the attributes of a quality company. Companies with these attributes often out-perform their peers and generate superior returns.
We pay sensible prices
Understanding whether a company’s earnings potential justifies its price is key to successful investing. Whilst prices are often influenced by sentiment in the short-term, they tend to revert to prices more closely reflecting their earnings per share growth over the longer term. Knowing the sensible price to pay for these earnings allows us to identify where they have been mis-priced by the market.
