Companies, whether public or private, should be managed in the best interest of their shareholders. Consistent with this view, we invest for the long term in well-run companies creating sustainable value.
We focus on companies that are out of favour, complex or undergoing significant change. Such companies are the most likely to be mispriced, thereby mitigating risk. We originate our own research and continually engage with management to develop in-depth knowledge of key differentiators — strong leadership, large market opportunity, barriers to entry — that drive winning companies.
We assess business value by the company’s ability to optimize cash flows from existing assets and earn attractive returns on incremental investments. We assess valuation risk by constantly weighing price against value. We assess financial risk by balance sheet strength. Experience has taught us that investing in companies with these characteristics stacks the risk/reward deck in our favour.
We emphasize mid to large size companies with resilient business models and commonly maintain investments for 5 years or more. Our portfolios are concentrated, driven by conviction, and differ markedly from market indices. We do not 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.
