Wheat from the chaff: we screen extensively to identify stocks priced attractively relative to their quality. Price to book and the five-year average return on assets are particularly important as we identify a stock’s divergence from its long-term fair value.
Financial statement analysis: we scrutinise company statements, then analyse the company in depth and speak with management.
Taking position: the size of our position is informed by our risk assessment. We manage risk at the stock and portfolio level. Typical holding periods are 12 to 18 months.