INVESTMENT PHILOSOPHY
The investment world is ultimately rational

We have a simple, clear and rational investment philosophy, rooted in the principles that guided Sir John Templeton throughout his long and successful investment career. We are committed long term investors who believe that markets are not always rationally priced. Our aim is to identify, through disciplined and intensive research, those securities that we regard as being clearly undervalued on an absolute basis.

Put simply, we believe that the best way to make money for clients is through buying assets for less than they are worth. Nobody can know with precision when the markets will correct valuation anomalies, only that they will be corrected in due course. This philosophy requires a patient, long term approach to portfolio construction and a willingness to resist the pressure to conform to index or benchmark pressures. As a result, our portfolios rarely look the same as the relevant market index. Investors who choose us to look after their money do so in the knowledge that our approach is by definition contrarian and non-consensual.

Our belief is that a patient valuation-driven approach to security selection, implemented rigorously and with skill, is the most reliable way to achieve superior absolute returns over the medium to longer term. A second core strand of our philosophy is the belief that it is common sense to use cash and other liquid assets as alternatives to equities at times when the equity markets are failing to generate a sufficient number of attractively valued opportunities.

The focus of our research is on identifying securities that are capable of maximising the total return to investors, rather than pursuing specific yield or capital growth targets. Our business is about managing a range of global funds and mandates in the same broad style, seeking out the most attractive opportunities across a range of markets, preferably unconstrained by index or benchmark restrictions. Clients, we believe, will be attracted by the purity and simplicity of our long term investment approach.

"There are no short cuts to achieving superior returns in investment. Painstaking research and the patience to wait for results have always been the foundation of exceptional long term performance".

Dr Sandy Nairn, Founder and Chief Executive, Edinburgh Partners.