Grow client wealth ahead of the broad market over the investment cycle without subjecting capital to undue levels of risk.
Our attitude to risk can be summarised as the chance of permanent loss of capital or unforseen volatility and, in this sense, we believe risk is best controlled by:
- Ensuring that the price paid for a stock includes a margin of safety, that is represents a discount to intrinsic value
- Developing a deep understanding of our holdings and their context within a broader portfolio
Our portfolios can be characterised as:
- Resilient, high conviction that maximise risk-adjusted returns
- Unnecessary turnover minimised
Equity investment returns are primarily driven by the:
- Economic performance of the business you own or business “quality”
- Price paid or starting valuation
Business “quality” is determined by the degree and sustainability of competitive advantage and is ultimately subject to ongoing tests as excess returns will attract change in the operating environment, including new competition, technological disruption, greater regulation and management missteps. Accordingly, in the long-term all businesses succumb to changes in the operating environment as described by the Antipodes Capital Lifecycle Model ©.