Philosophy & process
Patience is a process, not a personality.
We buy good businesses at sensible prices and hold them while the reasons we bought still hold. Every step of that sentence has a rule behind it.
What we believe
Four beliefs that shape every decision.
Price and value are different numbers.
Markets price fear and excitement daily. Value moves slowly with cash flows. We act in the gap and wait for the two to meet.
Governance is not a footnote.
A great business run by people who treat minority shareholders badly is not a great investment. Our negative list removes them before the spreadsheet opens.
Market cap is an outcome, not a strategy.
We own large, mid and small companies as the opportunity set changes. Flexibility is the point of a flexi-cap mandate.
Behaviour beats brilliance.
Most long-term returns are lost in a few panicked weeks. A written process protects you from us, and us from the market.
The process
From an idea to a position.
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01
Screen
Quantitative filters on return on capital, leverage, cash conversion and pledging narrow the universe.
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02
Negative list
Anything with governance red flags, related-party abuse, auditor qualifications or harmful practices is removed.
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03
Research
Annual reports, management meetings, channel checks and a written thesis for each company under FAITH.
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04
Value
An intrinsic value range with a margin of safety. Position size follows conviction and liquidity.
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05
Review & sell
We sell when the thesis breaks, the price overshoots value, or a clearly better opportunity appears.
Risk
How we try to lose less.
Position limits
No single stock is allowed to dominate the portfolio; sector exposure is monitored against the benchmark.
Liquidity discipline
Small-cap positions are sized so we can exit without moving the price against you.
Cash as a choice
When nothing meets our valuation bar, we are willing to hold cash rather than force a purchase.
“Like virtually every PMS strategy, FAITH fell in the recent correction. We did not change the process to chase the recovery. That discipline is what you are paying for.”
Portfolio strategy