We are long term, fundamental, value investors. We are attracted to shares that trade at a discount to our own determination of intrinsic value. We typically invest when we are satisfied that we are being sufficiently rewarded through the discount to intrinsic value for the inherent risk in the investment.
The opportunity to generate outperformance as active managers arises out of the market’s mispricing of shares in the short term due to market inefficiencies and investor behavioural biases. As value investors we tend to specifically exploit opportunities where the market prices reflect current prospects of a company as opposed to a level of profits that a business can generate through an economic cycle. We take long term views on each investment and realise value for clients as market prices converge to the intrinsic value of a share.
Afena Capital has had a single investment philosophy since inception of the business in 2005.