PE has outperformed the stock market over most time horizons. GHS aims to do likewise by using PE techniques to generate 15% IRR p.a. long term. Detailed due diligence is undertaken on companies with strategic, management or operational change options. Other techniques include focus on cash generation, constructive management engagement and input from an experienced Investment Committee and Advisory Group, all mitigating risk. The manager has a strong track record implementing this strategy while at SVG. With the share trading at a 20% discount to NAV investors have a good entry point and the assets are quoted securities or cash (£15m). GHS’s small cap, value focus may also see cyclical outperformance. It has beaten the FTSE small cap (ex IT) index by c6% over the last year.
08 Sep 2016
PE approach pumping up investment returns
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PE approach pumping up investment returns
Rockwood Strategic Plc Registered (RKW:LON) | 0 0 0.0% | Mkt Cap: 35.8m
- Published:
08 Sep 2016 -
Author:
Mark Thomas -
Pages:
6
PE has outperformed the stock market over most time horizons. GHS aims to do likewise by using PE techniques to generate 15% IRR p.a. long term. Detailed due diligence is undertaken on companies with strategic, management or operational change options. Other techniques include focus on cash generation, constructive management engagement and input from an experienced Investment Committee and Advisory Group, all mitigating risk. The manager has a strong track record implementing this strategy while at SVG. With the share trading at a 20% discount to NAV investors have a good entry point and the assets are quoted securities or cash (£15m). GHS’s small cap, value focus may also see cyclical outperformance. It has beaten the FTSE small cap (ex IT) index by c6% over the last year.