Equity funds – a wealth of opportunities requires a wealth of expertise.
While share prices may be affected by sentiment in the short run, they reflect a company’s true value in the long run. We “think like an owner” to seek out attractively priced companies with the potential to generate the profits that will make an investment pay off. The most attractive investments are unpopular and out of the mainstream. We aim to identify these “hidden gems”, as they are the source of long-term returns for the portfolio.
Temporary influences such as fashions and trends, a short-term change in the macroeconomic environment, exchange rate fluctuations, or investor psychology, which is often determined by greed or fear, can lead to significant short-term discrepancies between share prices and enterprise values. These discrepancies present excellent opportunities for value-based investment in the equities segment.