INVESTMENT THESIS.

Risk is poorly defined as volatility. We prefer to define it as the possibility of a permanent loss of capital. To mitigate this risk, we seek to invest into high quality listed businesses, with principled, capable, shareholder-friendly management, whose shares are trading well below a fair assessment of their intrinsic value. We define a high quality firm as one generating its net profit from cash-flow operations as opposed to deriving from accounting gimmickry. Firms carrying excessive amounts of debt on their balance sheet are vulnerable to the ebbs and flows of the business cycle. Therefore we favour firms generating their net profit free of excessive leverage. In order not to overpay for a quality business, we seek firms generating a double digit cash-flow yield. We also seek to invest in assets not highly correlated to traditional asset classes that can contribute to our objective of delivering absolute return, relatively low risk investment returns.