“Choosing individual stocks without any idea of what you are looking for is like running through a dynamite factory with a burning match. You may live, but you are still an idiot”.
—
Joel GreenBlatt
Kingfisher Portfolio
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Description
The Kingfisher Portfolio invests capital on behalf of its clients via managed accounts.
The investment can be characterized as a “Best Ideas Portfolio”. The client will be owning businesses and those businesses have a value independent of stock prices. The manager believes that analysing this value is a more objective understanding process than forecasting markets.
Strategy
The strategy seeks to achieve capital growth by investing in a concentrated portfolio of liquid equities with a story that could trigger the stock price. The approach used is to build a portfolio by investing in high quality businesses with a strong management and market position rather than speculating in stocks.
The manager focuses on companies that have a potential catalyst, that if played out, could have a positive reaction on the stock price. It could be companies that have either a strong growth potential, valuation, out-of-favor, restructuring, buyout potential, split potential, strong dividend yield, beaten-down share price, drug approval or a recovery situation.
Patience is a key ingredient to this strategy, once the manager is comfortable with a company and its potential he takes a position and wait for the catalyst to play out.
