PAM Capital follows a ‘focus investing’ methodology and is therefore highly research driven. Our focus on unearthing value in the equity markets allows us the freedom to be less market momentum driven and more fundamentals and event-driven in nature. PAM Capital considers itself to be a longer term shareholder in most companies in which we invest in comparison to many other hedge funds that are more speculative in nature. The time invested during the investment process allows us to take a longer term view on a company’s outlook whilst building in to our view external factors such as macroeconomic environment and the regulatory landscape.
With the present economic climate of austerity, sovereign debt and Wall Street unaccountability, our Directors turned to investment principles and values that have been in existence since the 1930’s.
We adhere to the principles of ‘focus investing’ for the investment vehicles we manage which was codified in Benjamin Graham’s book ‘Security Analysis’ in 1934. This still resonates today. Indeed the best known disciple of this investing style is Warren Buffett, one of the world’s most respected investors.
Focus investing revolves around the identification of companies that are distinctly well run (as per specific criteria), have a distinct marketing edge versus their industry peer group, and have long-term growth prospects as a result of proprietary assets, brand equity or market dominance.
This investment style also involves maintaining a concentrated portfolio of stocks that have a higher statistical probability of outperforming the markets over an extended period of time. Our philosophy is to hold a small portfolio of outstanding stocks or funds that we have extensively researched and fully understand.