We were founded on the premise of investing in attractively valued, simple, high quality businesses that exhibit high and sustainable growth attributable to the rising living standards in emerging markets. The ascension of this consumption is supported by multi-decade structural trends such as urbanization, young demographics, product development, low levels of credit, and high savings rates.
We invest in companies that can generate a high return on capital and redeploy capital at a similar rate. Besides having sound management teams, they also exhibit the following qualities: Pricing Power; Structural Volume Growth; Low Capital Intensity; Strong Balance Sheet; and Recurring Revenue Growth. We seek out companies that can grow not just because of the macroeconomic environment, but in spite of it.
We apply a multi-dimensional research approach that goes beyond just fundamental research. It is in our “Be-The-Consumer” methodology that we are able to gather unique long-term intrinsic value insights. In consumer staple categories, changes are structural, slow, and long lasting which gives us the time we need to understand the trends and consider the value proposition accordingly.