How an idea becomes a position

A sequence, not a shortcut

Every position in the portfolio passes through the same sequence of work. The stages are not a formality. Each one is a point at which an idea can be dropped, and most ideas are.

Idea generation

Ideas are generated in-house, from screening, sector tracking and the partners' own reading, rather than taken off a broker's list. The source matters. An idea the team found for itself arrives with the team's own questions attached; an idea handed over by someone else arrives with theirs.

Sector assessment

Before a company is studied closely, its sector is. Where does the sector sit in its own cycle? What is driving demand? Is the tailwind structural, or temporary? A company can be well run and still be exposed to a cycle that is about to turn.

Company due diligence

This is the longest stage. Financial statements are read in full, unit economics are understood, and promoter conduct and related-party history are examined. The question is not only whether the business is good, but whether the people running it have behaved in a way that can be checked and relied on.

Valuation and sizing

A good business is not automatically a good investment. The firm forms a view on intrinsic value and on the margin of safety at the current price, and sets a position size proportionate to conviction and to the risk being taken.

Sizing is part of the decision, not an afterthought. A position the team understands in depth can be larger; one with more open questions is smaller, or waits.

Monitoring and exit

Once a position is held, the thesis is re-tested against results as they come. A position is sold when the thesis breaks or the value is realised, not because the price has moved.

That rule cuts both ways. A falling price is not in itself a reason to sell if the business is doing what was expected, and a rising price is not a reason to hold on once the reasons for owning it have gone.

What the process does not promise

A disciplined process improves the quality of decisions; it does not guarantee their outcome. Equity markets are volatile, a Category III Alternative Investment Fund may use leverage and complex strategies, and there is no assurance of return.