High Street implements a top-down investment philosophy based on the GARP - Growth at Reasonable Prices - principles. This is the cornerstone on which we identify companies with appealing “narratives” based on strong underlying fundamentals. Essentially we seek companies led by a strong management team enjoying a sustainable competitive advantage, which ultimately should enable them to grow sales and accrue cash at healthy margins. Although this is a simplification, it does establish the building blocks on which a thorough analysis is initiated.
OUR INVESTMENT PROCESS
Once a potential investment has been identified, the following principles are applied to assess the viability of the investment opportunity:
- Disciplined, uncompromising procedure: We follow a refined analytical process covering all phases from identification to implementation. External research is sourced from accredited research houses in an attempt to scrutinise our own in-house reports.
- High-conviction, unconstrained strategy: Our portfolio construction is based solely on the findings of our research and is by no means influenced by underlying index weightings.
- Diligent risk-management procedures: Our attitude when it comes to taking on risk is not to avoid it, but to manage it. In doing so, all of our investments are managed within prescribed parameters that are closely monitored on an ongoing basis.
We are a small, owner-managed firm that is able to invest in small- to-mid-sized companies that many larger institutions are unable to invest in due to liquidity requirements. This allows us to broaden our investment universe and consider high-quality, smaller companies listed on the JSE with sufficient liquidity for us to participate. With these companies, it is imperative to engage in ongoing discussions with management. As such, we attend regular meetings with management in an attempt to keep abreast with the smallest of changes impacting our investments.
Our team has gained invaluable experience, over multiple market cycles, at established firms from UAL to Coronation. Skills gained cover bond and equity fund management, stockbroking, derivative curve trading and asset structuring. It is this diverse background that enables us to apply a well-balanced methodology to the investment process.
Transparency and communication are central to our core values. In adhering to this, all of our funds are single-layer products that do not charge any fees upon entrance or exit. Should the need arise to withdraw your investment at any stage, your funds will be made available free of any penalties or lock-in clauses.
Our size enables us to focus on each of our clients’ needs. High Street portfolio managers are only a call away and are always available to cover any questions you should have.
Have we mentioned that we are asset managers? All of our administration, custodial and brokerage services are outsourced to established, independent service providers in order to make sure that we focus on what we are good at – delivering consistent, market-beating returns. This not only enables us to direct our focus but also provides our clients with peace of mind knowing that a trusted, household brand is administering their money.