442 Capital Emerging Companies Fund

APPROACH

Our absolute responsibility to our clients is to protect and preserve capital in real terms.

We seek to compound capital at 8-12% per annum over an investment cycle (approximately five to seven years). We aim to achieve this by constructing a high-conviction portfolio within our clearly defined risk framework. The Fund will consist of 20-25 companies only.

INVESTMENT STRATEGY

The investment strategy of the Emerging Companies Fund is guided by the following principles:

  • We aim to invest in companies that have a clear strategy and ability to grow earnings through organic means.

  • We target companies that operate in industries that are essential and simple to understand.

  • We target companies that have developed a real competitive advantage, evidenced through market share gains, pricing power, and appropriate return on invested capital.

  • We value founder backed business. The alignment of interest is central to performance.

  • We will not invest in businesses that are complex or that operate in industries that are in structural decline.

INVESTMENT CRITERIA

We invest in companies with a clear and improving competitive advantage, run by management who think and operate like owners. Our investment criteria are stringent and applied in a consistent and disciplined manner.

INVESTMENT DOCUMENTS

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