KAM’s Strategic Value investment style centres on four key concepts:

• Conviction
• Diversification
• Patience
• Process

Conviction means buying significant stakes in companies that meet our strict investment criteria and that fit the chosen investment theme. It means holding and adding when prices fall if the criteria still stand.

Diversification must be multi-dimensional. KAM seeks to diversify by geography, industry, size of company, and investment theme.  Of these, investment theme is the most important. Through varying investment themes we diversify the circumstances in which the portfolio will generate excellent long-term returns. 

Patience is an important trait for Strategic Value stock selection.  There are times when few excellent investment opportunities exist, and other times when opportunities are abundant. We will only act when opportunities arise. The combination of conviction and patience means that the Strategic Value Fund has very low turnover.

KAM have a clearly defined process designed to endure in all market conditions.  This process provides the structure within which KAM can ensure both conviction and diversification. We are firm believers that to generate good returns one needs insight, but insight can only be applied effectively through a well-defined process.

KAM seeks out opportunities which have valuable and identifiable business franchises but are experiencing depressed earnings and are unloved by the market.  If we correctly identify those whose earnings snap back, we achieve the dual benefit of growing earnings and rising expectations.  This can create exciting investment opportunities.