At the heart of our strategy is a simple truth: In the long run the return on a stock will closely approximate the return on the business itself.
Therefore we own companies with resilient business models that can weather changing environments and provide attractive long-term returns.
Our strength is emphasizing business fundamentals, not newspaper headlines.
We originate our own research and engage with management to gain insights not reflected in the stock price.
We assess potential by owning businesses that benefit from robust long-term demand dynamics, recurring cash flows and attractive returns on incremental investment. We assess financial risk by balance sheet strength. We assess valuation risk by weighing expected return against our hurdle rate.
Experience has taught us that investing in companies with these characteristics stacks the risk/reward deck in our favour.
Our house style is designed to deliver superior risk- adjusted returns. Our portfolios differ markedly from market indices. We commonly hold investments for 5 years or more. We equally weight investments at purchase. And we don’t dilute our best ideas by over- diversifying.
The ability to consistently adhere to our house style is rooted in the long tenure of our portfolio managers and the fact that they have honed their craft here at Kingwest.
We don’t wish for success, we plan for it. Improving business fundamentals. Proven, capable leadership. Price matters. This time-tested strategy makes Kingwest a secure home for your assets.
