We believe people are motivated by short-term outcomes, overemphasise recent information and are uncomfortable having unpopular views.
A Long-Term Perspective
- We only pay for what is sustainable
- We look through fads and fashions
- We aim to understand the risk of losing long-term capital
- We are always sceptical
- We are wary of popular opinion
- We do all our own research
A Culture of Ownership
- We own our business
- We co-invest in our funds
- We actively engage with companies
The Merlon process is simple: we invest in undervalued companies where we think market participants have become too pessimistic.
Sustainable Cash Flow
- Sound industry structure
- Competitive advantage
- Sensible boards and management
- Undemanding broker forecasts
- Market concerns factored in
- Limited risk of permanent loss
- Portfolio driven by research outputs
- Prudent risk, liquidity & other constraints
For further information, please click here to view our Investment Philosophy.