Our Investment Philosophy
We are long-term investors. We believe that patience is crucial to allow our investments to deliver superior returns over time. We buy to hold and refrain from employing short-term momentum strategies. African financial markets are still highly inefficient and have substantial liquidity constraints. Even if it would be possible to generate value through such strategies, short-term country- or sector rotation strategies in African markets are impossible to implement for institutional investors.
We are active fundamental investors. When selecting securities, we look for solid fundamentals, strong risk-adjusted return prospects and a margin of safety with respect to estimated intrinsic value.
Research is one of our key strengths. We invest a significant amount of effort in researching the securities we invest in.
Disciplined risk management. We believe it is a must for any investor into frontier and emerging markets to establish a robust risk management framework. Limiting exposure to single countries is in our view the minimum to contain otherwise uncontrollable political and macroeconomic risks. We are monitoring political and macroeconomic risks constantly for the Africa region.