Investment Philosophy and Style
Investment philosophy
Long term inherent value
GVI investment philosophy is based on the belief that investment markets are inefficient and that over the long-term, a company's share price will reflect its underlying inherent value. Accordingly, the investment team focuses on the long-term outlook and fundamental valuation of a company.
The importance of dividends
GVI also believes that dividends are an important long term component of the total return to investors. High yields guarantee a level of investment return in flat and falling markets. As a result, GVI has a preference for established global industrial companies that currently pay or will have the capacity to distribute attractive dividends in the future.
Benchmark unaware
GVI does not consider the benchmark when buying a stock. We have an absolute return focus and the risk/return outcomes in our portfolios are a result of our bottom up process.
Overall, GVI's investment philosophy generally leads to taking long term positions in companies and adopting a conservative and disciplined approach to investing.
Investment Style
Our style can be described as:
- Bottom-up approach with a strong value bias.
- Systematic and disciplined research-driven process.
- Benchmark unconstrained.
- Focused on quality, dividend paying companies.
- Aware of downside risk on stock and portfolio level
GVI looks for companies with:
- resilient and recurring earnings
- strong balance sheets
- a competitive advantage and
- the opportunity to grow earnings and dividends over time.