We require trust, transparency and accountability from our investee companies. As part of our proprietary investment research, we typically consider a company’s:
- Track record for allocating capital
- Board quality, diversity and composition
- Alignment of incentives for major shareholders, minority shareholders and managements
- History of protecting minority stakeholder rights, especially in a crisis
- Ability to attract and retain talent
- Exposure to regulatory, market and other risks.
To develop a 360-degree view of investee companies, our due diligence process includes meetings with one or more of the following stakeholders: company management, employees, customers, suppliers, research and civic organizations. This helps us gauge the strength and quality of management teams, as well as the viability of a company’s business model. We may also consider a company’s potential for successfully entering new areas of business by leveraging existing strengths. In markets that are rapidly growing and still inherently inefficient, we believe identifying companies with strong corporate governance is essential to helping manage our clients’ investments. We believe governance influences social and environmental factors, providing a starting point for analysis. Having a deep history of analyzing Asian countries' governance and regulatory environments helps us shed light on potential environmental and social risks inherent in companies.