Focus.
Conviction.
Dedication.
Sustainability.
 

Focus: We run a focused portfolio of high-conviction holdings. Our Fund is not correlated to any particular index. We target absolute returns, though we strive to deliver consistent outperformance vis-Ă -vis the broad Thailand and Vietnam benchmarks. We focus primarily on smaller capitalization growth companies, though we may own larger companies that fit our growth and returns criteria. Our focus on smaller companies means that the Fund has exposure to many names often not found in other institutional portfolios.

Conviction: Our conviction is that select Thai and CLMV equities offer unique growth opportunities that can generate above-average capital appreciation for longer-term investors. We believe the entrepreneurial energy, geography, cultural similarities, and increasing interconnectedness of the Mekong sub-region will see it follow Thailand’s development achievements of the past 30 years. We look for companies that have exposure to CLMV either through trade links or through investments in the region.

Dedication: We are dedicated to finding the best multi-year stock investment stories within Thailand and the broader CLMV region. We follow a bottom-up method to identify outstanding growth companies. We look for industries and companies in particular that are benefitting from changing opportunities and competitive dynamics. Many of these are in emerging growth industries, though some are in traditional business undergoing change or disruption. We look for growth companies with sustainable margins, returns on capital, and free cash flow. We favor stocks in which management maintains a significant equity stake.

Sustainability:  Sustainability is an important component in our investment process. We believe there is an alignment between the interests of shareholders, and a company’s commitments to sustainable growth and corporate responsibility. We agree with the emerging body of evidence that these commitments contribute to superior investment returns over time. We conduct a broad risk-profiling of our prospective holdings that incorporates sustainability criteria along with other growth and financial returns metrics. This includes our consideration of environmental impact, social responsibility, and corporate governance (ESG) measures. We also consider a company’s prospects for improving performance in these areas.