Our global equity strategy, ABLS Global Core Select, takes a long-term business-ownership approach while maintaining a discount to intrinsic value foundation. We look for well-established, cash-generating businesses that are top providers of critical products and services, and we try to buy their publicly issued equity instruments at a discount to their real values*. Intrinsic value estimates are based on a proprietary study of future free cash flows and returns on capital. We adopt a methodical investment selection procedure that considers company, management, and financial factors.
ABLS Global Core Select would typically invest in 30 to 40 U.S. and non-U.S. companies with market capitalizations over $3 billion, with a minimum of 40% non-U.S. companies in the portfolio. Three to five years is the intended holding period, and investments are normally sold if their value rises above our estimates of intrinsic value.
Criteria for Investment
Companies with the following business, managerial, and financial characteristics, in our opinion, are well positioned to create value for shareholders in a variety of economic and market circumstances.
Business Characteristics
- Products and services that are essential
- Customers who are loyal to you
- Leadership in a lucrative market area or industry
- Competitive advantages that last
Attributes of Management
- Operators who are trustworthy
- Capital allocations that are favourable
- Share ownership that is meaningful
Financial Characteristics
- Free cash flow and a strong balance sheet
- High rates of return on investment
*ABLS's estimate of the present value of cash that a company can generate and deliver to shareholders over the course of its remaining life.
-The strategy may take big positions in a small number of issuers, thus increasing the risk of price volatility.
-Currency risk, higher volatility, political hazards, and differences in auditing and other financial standards are all factors to consider while investing internationally.
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