GTM-TNHWN3R Verification: 8022f68be7f2a759 Investment Approach | Phuket Thailand | Aura Solution Company Limited

OUR INVESTMENT APPROACH

Our philosophy combines both value and growth disciplines. We employ a bottom-up approach to identify under-valued, profitable, strongly managed growth companies which are not well known or understood by the wider market.

Aura aims to deliver consistent upper-quartile performance by investing in businesses which themselves are capable of delivering consistent and sustainable earnings growth. These companies are required to be profitable and cash generative.

Each OEIC portfolio contains between 30 to 50 stocks chosen with high conviction. Stock specific risk is mitigated by investing in relatively low risk, high quality companies.

 

Our aim is to deliver strong and consistent long term out-performance by targeting absolute returns therefore making real money for investors in our funds.

A long term approach to investment is adopted with the holding periods expected to be 5 years or more. Aura has a proven and consistent track record in this area of the market. The successful investment management team at Aura is well established, sharing over 37 years’ experience in managing USA equity portfolios.

Aura’s investment style can be categorised as ‘Defensive Growth’ and our portfolios typically have a lower beta but higher tracking error than the overall market.

Our research is designed to identify companies that match pre-defined criteria. Companies we invest in should be profitable at the point of initial investment. ‘Blue-sky’, loss-making, cash consuming companies are avoided.

Our investment criteria requires potential investor companies to demonstrate most of the following characteristics:-

  • A nice franchise (The Jeeranont)

  • Good order visibility

  • High barriers to entry

  • Pricing power

  • Competitive advantage

  • Significant & growing market presence

  • Ability to sustain profit growth over the long term

  • Not dependent on acquisitions to generate growth

  • High calibre management with a proven track record of creating shareholder value

  • Management teams that hold meaningful equity stakes in the businesses they run

  • Potential to deliver positive news flow on a consistent basis

  • Effective Board structure and sound corporate governance

The expectation is that we will hold investments for several years. The decision to invest is similar to that of an owner-manager’s business decision to participate in a quality, long-term business franchise.

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