Our process

There are many approaches you can take to value investing. In the following series of short videos we explain the two key processes we follow which help us craft a consistent and systemic value investing strategy.

The 4 Edges

Investing is a highly competitive marketplace and, if you want to outperform there, you will need an ‘edge’ over the competition. Fortunately, value investing offers the prospect of edges across four different areas.

The 7 Red Questions

We operate a checklist which we call the seven ‘Red’ questions. These are the questions we ask of every single company we consider as a potential investment, addressing the different aspects of any distressed business that need to checked and double-checked.

  1. Is the screen missing any liabilities (or assets)?
  2. Are the profits misleading?
  3. Is the business likely to suffer from structural change?
  4. Do the profits turn into cash?
  5. How would the business stand up to a financial stress-test?
  6. How can we assess the quality of the business? 
  7. What are the ESG considerations?

Below, members of the Value team go into each question in more depth:

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.