A focus on equity income and value. All of our funds are run to a single investment philosophy and process which simply aims to rotate around the market to where we see areas of undervaluation.


The capital cycle. We believe that companies go through a capital cycle in which high returns attract competition, thereby lowering profitability, whilst low returns result in capital leaving an industry, in turn leading to less competition and higher profitability. Investors tend to extrapolate recent trends, however, and assume high returns will continue indefinitely which, we believe, leads them to overvalue the most profitable businesses and under value businesses which are struggling.


Intrinsic Value Estimates. We value businesses by estimating their long run earnings potential. This helps us avoid companies which appear cheap but are in reality at the top of a cycle or in structural decline. Conversely, we are attracted to businesses suffering a temporary dislocation but where we believe earnings, and therefore the share price, are likely to recover in the future. For this value to be realised the companies must also have strong balance sheets and capable management