Our approach to investing is based on the belief that superior long term equity performance is driven by above average, sustainable earnings growth.
Industry structure and the company’s relative position within the industry are critical determinants of that performance.
The economy, industry and markets are dynamic and constantly subject to change. A company’s ability to cope with such changes is greatly enhanced when the competitive structure of the industry in which it operates is favourable. Thus this is the focus of our research.
Our philosophy has delivered strong returns to our clients over the medium and longer term. As we are all investors in our funds, our success is linked to our client's success.
We take a longer term view when researching ideas and our focus is on generating sound investment ideas utilising a highly experienced team with in-depth industry knowledge.
Understanding industry dynamics is our key focus. Our research identifies the key industry structural challenges that all businesses face. Understanding where the bargaining power resides helps identify where value is created or lost.
Our industry analysis can broadly be broken into stages:
The in-depth company analysis builds on our industry work and further identifies a companies:
Arnhem applies a robust assessment of valuation, using four separate valuation methodologies, where applicable. These are: