We strongly believe that the best opportunities for investment success is investing in high-quality, well-managed, but mispriced companies and monitoring them closely until the reach their full potential. We add value by the depth of knowledge that we develop on our investment candidates.
When analysing a company, we are looking for:
- An outstanding management team
- A sustainable competitive advantage
- Strong operating cash flows
- High returns on capital
- A market value below the intrinsic value of the security
Van Berkom’s bottom-up fundamental investment process is built on a deep understanding of portfolio companies and candidate firms.
We use filters based on quantitative criteria to pare down potential candidates, to identify companies satisfying minimal requirements, then further our analysis by:
- Probing their business model and growth potential
- Meeting their leadership team to scrutinize their vision, management model and business plan
- Establishing our own growth model based on conservative assumptions
- Analizing the material impact of ESG factors
- Integrating risk-return analysis
We conduct hundreds of company visits and management interviews each year.
Our management process and prudent risk management approach leads us to:
- Avoid permanent value destruction of holdings
- Find high-quality companies
- Avoid companies with short trading or operational history
- Look for companies with a strong balance sheet
The quality of our portfolios allows us to cope with market crises while helping to achieve our growth objectives.