The Merlon Concentrated Value Strategy is a portfolio of what we consider to be undervalued companies constructed without regard to index weights.
Differentiating features of the Strategy
- Deep fundamental research. This is where we spend the vast majority of our time and ultimately how we expect to deliver superior risk-adjusted returns for investors.
- Portfolio diversification with no reference to index weights. The benchmark unaware approach to portfolio construction is a key structural feature, especially given the concentrated nature of the ASX200 index.
- Sustainable income: Potential for consistent and sustainable income by investing in undervalued shares expected to deliver an attractive dividend stream, supported by strong underlying cash flows.