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The Company's strategy is to identify undervalued asset situations which meet its investment criteria and then make a significant investment in each of those situations. Therefore, it is likely that the Company will hold less than 10 core holdings at any one time.
The Portfolio may consist of:
- 4-5 primary core situations with 10-20% of the Portfolio in each;
- 4-5 secondary core situations with 5-10% of the Portfolio in each; and
- 5-10 short term trading situations with 1-5% of the Portfolio in each.
However, the above apportionment is for example purposes only and the composition of the Portfolio may differ considerably at the discretion of the Manager.
It is possible that the Company will have up to 95% of its Portfolio invested in a total of less than 10 core situations. The concentration of the Company's Portfolio in this way may result in a reduction of the benefits of diversification and may increase the risk profile of the Company when compared to a more diversified portfolio. Investors should carefully consider whether they are comfortable with this reduced diversification before deciding to invest in the Company.
Where the Manager is unable to identify suitable investment opportunities, surplus funds are held in cash. The cash weighting of the Portfolio is not expected to exceed 50%, except while the Portfolio is being initially invested.
While searching for undervalued asset situations, it is possible the Manager may identify situations where a company's securities are trading at a substantial premium to their intrinsic value. Although short selling is not a core part of the Company's business, it may short sell securities of entities which the Manager identifies as being substantially overvalued.
While searching for undervalued asset situations, it is possible the Manager may identify low risk, or risk free, arbitrage situations. Although arbitrage is not a core part of the Company's business, it will participate in these opportunities where the return offered outweighs the associated risk.
Investment Objectives |
Investment Strategy | Investment Process |
Portfolio Construction | Permitted Investments
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