Investment Strategy:

My investment strategy can be summarised as a concentrated fundamental bottom-up approach, focusing on GARP and Special Situations.

My portfolio typically has 5 – 10 businesses at a time, adjusting positions based on fundamental diversification factors, conviction, range of outcomes and risk-reward ratios. There are no restrictions in terms of geography, industry or size since I believe that restricting myself would result in loss of potential opportunities.

I conduct deep analysis into each company before investing, understanding all aspects of the business. I aim to buy shares in companies that are out of favour with the market due to temporary operational issues, special situations, restrictions of institutional investors or market short-term focus. By special situations, I mean misunderstood businesses, shareholder activism, spin-offs, liquidations, hidden assets and turnarounds.  This allows me to buy companies at a discounted price to their potential value with attractive risk-reward ratios and benefit from value unlocking events or operational improvements. I aim to have a low turnover in my portfolio and change my positions only because of better risk-reward opportunities or mistakes.

The risk is controlled through:

• Staying in a circle of competence.
• Distinguishing clearly between factual information, near term future and speculation.
• Diversifying based on fundamental factors which may materially impact operational performance of businesses.
• Buying companies with a margin of safety.
• Selling companies if my investment thesis does not hold anymore.

My investment approach has been evolving since the start of my journey, and it is likely to change in the future.