Investment philosophy

Substance over speed.

The beliefs that guide how the fund puts capital to work.

Capital is a promise. Our work is to understand that promise before we make it, and to structure it so that it can be kept.

How we think

Principles

  1. 01

    Value

    We look past price to substance: what an opportunity is truly worth, and why.

  2. 02

    Margin of safety

    We favour arrangements with room for the unexpected, so that a surprise does not become a setback.

  3. 03

    Discipline

    Each opportunity is reviewed with the same care: who we are dealing with, what the capital is for and how it is protected.

  4. 04

    Patience

    We take a long view. Decisions are made carefully rather than quickly.

  5. 05

    Alignment

    We look for arrangements in which the interests of the fund, its partners and its counterparties point in the same direction.

  6. 06

    Transparency

    We prefer clear terms, plain language and open information, for our counterparties and for the fund’s partners alike.

Words we live by

“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.”

Benjamin GrahamThe Intelligent Investor

“You only find out who is swimming naked when the tide goes out.”

Warren BuffettLetter to Berkshire Hathaway shareholders, 2001

“Lose money for the firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.”

Warren BuffettTestimony to the US Congress, 1991

How we work

  1. 01

    Origination

    Opportunities come through direct relationships and trusted introductions.

  2. 02

    Assessment

    We study the business, the purpose of the capital, its cash flows and what could go wrong.

  3. 03

    Structuring

    Terms, protections and documentation are agreed before any capital is committed.

  4. 04

    Decision

    Each decision is taken by the general partner and recorded.

  5. 05

    Monitoring

    Every position is followed closely, with regular contact and reporting, throughout its life.

  6. 06

    Completion

    Each arrangement is completed on its agreed terms, and the relationship continues where it makes sense.

What we look for

  • A clear purpose for the capital.
  • Cash flows we can understand.
  • Management that shares information openly.
  • Terms that are fair to both sides.

Responsibility

We expect the businesses we work with to operate lawfully, to treat people fairly and to respect the communities and environment around them. Opportunities that cannot meet that standard are not for us.

This page describes general principles only. It is not an offer of, or an invitation to acquire, any interest in the fund. Please read the important information.