Aubrey invests in current and future market leaders with long-term structural growth opportunities, selecting highly profitable, high growth, high margin businesses, where market leadership is sustainable.
We believe that the best balance of risk and reward is found in high quality, profitable, low debt businesses that will benefit from both industry growth and market share gains. The valuations put on these businesses often underestimate their long-term potential.
Aubrey believes that strong corporate profits translate into superior share price performance over the long term. The investment focus is therefore on growth, and our funds are comprised of companies from which we would normally expect earnings growth of at least 15% per annum, underpinned by strong, internally generated cash flow.
We are conviction investors so when we consider a company, sector or market to offer a good opportunity, we may commit a significant part of a fund to it. We are also benchmark agnostic and our portfolios are not constructed with any reference to indices.
We invest in areas of high economic growth by country, and by sector, using ‘wealth progression’ growth drivers to identify these, and choose companies that we consider can deliver sustainable high levels of internally generated cashflow. Wealth progression outlines the stages an economy goes through as it develops towards economic maturity. This highlights investment trends globally, allowing Aubrey to identify growth opportunities across different sectors in a consistent and repeatable manner.
Our research approach is a combination of direct meetings with companies and our own proprietary analysis. We make use of specialist research brokers in different markets, with whom we have typically had long term relationships, but their material is supportive and never dominant over our own financial analysis. Our integrated analysis of Profit & Loss, Balance Sheet and Cash Flow Statements is, we believe, extremely distinctive and has proved consistently effective in helping us avoid problematic investments, through its key emphasis on cash flow sufficiency through the business cycle.