Investment Philosophy

Investment Philosophy

Value Based Investment Philosophy

Auscap is a value based equities manager. Auscap’s funds target attractive total return opportunities through disciplined, patient investing. Auscap aims to preserve capital and generate long term, compounding returns.

Our value based investment approach focuses on long investments in high quality companies that have a sustainable comparative advantage and are trading at prices significantly below their long term intrinsic value. Our analysis includes consideration of Return on Equity (ROE); Return on Invested Capital (ROIC); capital structure; the strength and discipline of company management; product or service characteristics such as price, product, cost of production and market positioning; and measures of value, such as price, earnings, yield and future growth.

Auscap will seek to achieve investment returns by investing each of the Auscap funds’ capital in securities it believes will appreciate in value. Within the Auscap Long Short Australian Equities Fund, Auscap may short securities it considers will depreciate in value.

Generating returns is dependent on a number of assumptions, including sufficient attractive investment opportunities, the market’s recognition of the value of these opportunities in line with Auscap’s expectations and the ability of Auscap to limit the number and impact of errors in analysis, assessment and execution of its investment strategy. Auscap will allocate capital in accordance with expected performance and risk measures.