Our Investment Philosophy

“Our policy is to concentrate holdings. We try to avoid buying a little of this or that when we are only lukewarm about the business or its price. When we are convinced
as to attractiveness, we believe in buying worthwhile amounts.” Warren Buffett, 1978 Letter to Shareholders

OUR INVESTMENT PHILOSOPHY

investment philosophy graphic

Our Investment Philosophy is:

Opportunistic

We seek to invest in best-of-breed value-driven ideas. We adopt a domestic viewpoint to identify the best opportunity set for superior returns and actively limit the size of our portfolios to ensure a structure that is nimble in order to maximise value from opportunity sets.

Concentrated

We maintain an emphasis on best ideas, with a high degree of conviction. We generally hold between 0-30 investments across all our portfolios with a maximum weighting of circa 15% of Fund NAV/NTA.

Catalyst Driven

We place a primary focus on ideas that have a clear path and timeframe to realising value for investors.

Fundamental Research Driven

We undertake disciplined, detailed, bottom-up single name research with a view to building conviction such that best ideas dominate the portfolio. We gather information from industry experts and unlisted industry participants and our well resourced investment team maintains contact with over 500 individual companies per year.

Focused on Capital Preservation

We use a detailed macro-economic indicator model to manage portfolio cash/equity weightings in our portfolios. NAOS and its related Investment Company Board of Directors also lend their services to assist with setting the tone for top down portfolio structures.