Company methodology

We believe that in order for an investment idea to achieve an attractive long-term return it is necessary for the business to have improving fundamentals, positive sentiment and an attractive valuation over our forecast horizon. In the short-term, an attractive valuation is essential for us to consider investigating the stock. A discounted valuation in the short term is usually the result of deteriorating sentiment and fundamentals. In general, if we can foresee a turnaround in both of these factors over our investment horizon, and if this turnaround is not correctly “priced in” by the market, we believe we can earn our annualized return targets on the investment.