The Company’s Investment Strategy is to create a concentrated Portfolio, predominantly comprised of Long and Short Positions in global listed securities, actively managed with a focus on capital preservation.
The Company’s Investment Strategy will be implemented by the Manager and is designed to capitalise on the Manager’s disciplined investment approach and intensive research and review process. When assessing investment opportunities, the VGI Partners Investment Team, and the analysts that support them, will undertake a comprehensive ‘bottom-up’ approach in identifying, researching and valuing investment opportunities.
The Portfolio will be constructed in accordance with the Manager’s investment philosophy which is based on the key tenets of capital preservation, superior long term compound growth and concentration. The Manager will seek to ‘buy and hold’ long term investments in what it considers to be great businesses that are not fully valued by the market. The Manager may also short sell securities which it considers to be of low quality and materially overvalued by the wider market.
The Company’s Portfolio is expected to be concentrated on the long side. The Company will typically invest in between 10 to 25 Long Positions, of which 10 to 15 will be considered core Long Positions. The top five Long Positions within the Portfolio will represent on average between 40-50% of the Portfolio’s NAV at any given time. The Company will hold a net cash buffer (that it may deploy quickly in any period of market or stock specific volatility). In addition, the Company will hold cash or cash equivalents when attractively valued securities cannot be found.
In the Board’s view, the Company’s Investment Strategy offers investors an alternative to more traditional ‘long only’ funds, which largely rely on a rising share market to generate returns.
The Company’s investment objectives are to:
- provide long term capital growth through investing in a concentrated Portfolio, predominantly comprised of Long and Short Positions in global listed securities, actively managed with a focus on capital preservation; and
- deliver superior risk adjusted returns over the long term (which the Manager and the Company consider to be represented by an average compound annual return of 10% to 15% (after all fees and expenses) over a period of more than 5 years).
The investment objectives of the Company are not forecasts. The Company may not be successful in meeting its objectives.