Investment Philosophy

Our investment philosophy is the foundation of everything we do. We are a team of experienced professionals who are dedicated to providing the best possible service to our clients.

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Why Abakkus?

Discover what sets us apart in the world of asset management

Experience

Backed by a well-qualified and dedicated team of professionals with decades of combined experience.

Performance

A well-established performance track record over two decades in public equity funds and across all market cycles.

Commitment

A start-up culture with a high degree of commitment, urgency and passion for delivering results.

Positioning

Focused investment in alpha plays beyond the large number of listed companies supported by non-consensus, in-house research.

Opportunistic

Great flexibility in investing into new sectors, new themes which are backed by the entrepreneur-driven economy.

Consistency

Investment team has delivered consistently across market cycles with proven track record of performance.

Our Investment Philosophy

Six core principles that guide our investment decisions and drive our success

Alpha Generators

  • Believe in investing with an endeavor to generate alpha over the markets
  • Growth companies where profitability is expected to grow higher than market average
  • Fundamentally underpriced stocks with reasonable growth expectations
  • Mid Cap companies with scalable business model and growth potential

Fundamentals Driven

  • Bottom-up research with focus on Balance sheet
  • Numbers speak more than presentations and hype
  • Returns ultimately are all about earnings

Happy to be Contrarian

  • Prefer to be first, early and/or only investors
  • Do not chase the momentum
  • Open to look at companies across sectors, market caps and business cycle

Agile and Flexible

  • Each investment opportunity is looked upon individual merit
  • Not constrained to a particular theme or style

Patience

  • Buy and hold
  • Invest in a stock as if investing in a business
  • Think like a partner

Risk Reward Equation

  • Expected returns have to justify the risk / uncertainty taken
  • Focus on the price we pay, and value derived
  • What is in the price?

MEETS Framework

A framework for investment decision-making that drives consistent results

M

Management

  • Quality - Capability and track record
  • Capital Allocation – capex is fine if ROE is maintained or enhanced
  • Capital Distribution – fair to minority shareholders
  • Error in decision – Business errors vs intentional mishaps
E

Earnings

  • Quality of earnings vs reported numbers
  • Actual earnings vs expected
  • Cyclical vs Structural earnings
  • Companies that can double profits in 4 years or less or where EV/EBITDA can halve in four years
T

Timing

  • Good company is not necessarily a good investment if price is not right
  • What is the price discounting
  • Time frame of investment Mean Reversion
S

Structural

  • Size of the opportunity
  • Competitive positioning / MOAT
  • Consistent growth in profits