Generally fund managers key skill is buying and selling stocks in order to “outperform” their peers, or an index. They hold stocks for relatively short periods, on average a year or less, and timing is all important.
We do something different. At Kingwest, we excel at being good owners of businesses. The key skill necessary is identifying companies with the potential to compound in value over years, not months or quarters.
We own companies making operating or strategic improvements not reflected in the stock price.
The key to executing this strategy successfully is originating our own research and continually engaging with management to uncover the key differentiators that drive winning companies.
We assess the potential for value creation by recurring free cash flow combined with high return on incremental investments in large market opportunities. We assess financial risk by balance sheet strength. We assess valuation risk by constantly weighing price against value.
Experience has taught us that investing in companies with these characteristics stacks the risk/reward deck in our favour.
Our “house style” emphasizes mid to large size companies with resilient business models. We commonly maintain investments for 5 years or more. Our portfolios are concentrated and differ markedly from market indices. We don’t dilute our best ideas by over-diversifying.
We don’t wish for success, we plan for it. Sustainable business value. Proven, capable leadership. Price matters. This time-tested strategy will continue to drive better returns with less risk, making Kingwest a secure home for your assets.
