Comgest Flashcards
Sustainable Growth
We believe growth in earnings per share is the primary driver of stock prices over the long term. We invest in only a small number of companies that we believe have sustainable competitive advantages, high barriers to entry and pricing power which makes them capable of growing their medium-term earnings, irrespective of the economic cycle.
Research-driven and unconstrained
We are unconstrained by benchmarks, geography and sectors, choosing instead to focus on company-specific drivers of growth. Our experience has demonstrated that applying fundamental analysis and maintaining a long-term horizon are key to identifying companies capable of generating double-digit EPS growth.
ESG the key to quality
To confirm the quality of our companies, we integrate environmental, social and governance (ESG) factors into our stock selection process, as we believe these can impact a business over the long term. When we decide to invest, we aim to build strong, long-term relationships with management teams and be engaged shareholders to raise awareness of best practices.
Why this fund 1
I want to work here because I share your investment philosophy of focusing on quality growth. I believe that investing in companies that have strong competitive advantages, sustainable earnings growth and attractive valuations is the best way to generate long-term returns for our clients and ourselves. This approach aligns with what I find intellectually stimulating and my wider values of excellence, integrity and social responsibility.
Why this fund 2
I also admire your process of gaining a deep understanding of each company’s business model, competitive landscape and growth drivers before making an investment decision. I enjoy conducting thorough research, analysis and due diligence on potential opportunities and discussing my views with colleagues who have different perspectives and expertise. I think this process fosters a culture of collaboration, learning and innovation that sets you apart from other firms.
Why this fund 3
- *Finally, I appreciate your unconstrained investment style that allows you to invest across sectors, geographies and market capitalizations without being tied to any benchmark or index. This gives you the flexibility and freedom to pursue the best ideas wherever they may be. I also like the fact that after two years of working here, I would have the opportunity to become a shareholder in the firm and align my interests with yours. This would motivate me to work hard, deliver results and contribute to the success of the firm.
Focus
Our process begins with an overall review of the market to create a “watchlist” of companies that meet our quality and growth criteria.
Analyse
We often conduct years of fundamental research to build an in-depth understanding of a company’s business model including analysis of fundamentals, identification of any controversial activities and engagement with management, competitors, suppliers, customers and sector experts.
Wait
Our investment team creates a shortlisted “Universe” of investible companies that best fit our quality growth investment criteria. We monitor our opportunity set and invest only when the valuation is deemed attractive - which can sometimes take years. Valuation is typically based on conservative, proprietary 5-year forecasts of earnings and dividends.
Invest
We invest with a 3-5 year investment horizon, after building high-conviction, comprehensive views of select candidate companies and consensus through team-based discussions. Our focus is on quality and we build our concentrated portfolios of 25-50 stocks around this principle.
Risk
At Comgest, risk is viewed in an absolute sense, not relative to a benchmark. Our quality growth portfolios typically show high active share and lower long-term volatility than comparative indices. On an ongoing basis we monitor, amongst other aspects: fundamental risks and factors that may impact our EPS and valuation assessments; adherence to investment guidelines; regulatory restrictions; liquidity and performance. As all members of the investment team having been with Comgest for more than two years are also shareholders, they view risk from the perspective of a business owner.
Stewardship
We care about a company’s strategic intent as well as its impact on all stakeholders. In our mission to identify well-managed companies with robust business models, we assess a company’s use of critical sources of capital (financial, human, natural and social) via continuous analysis and engagement. We believe that broader ESG research enables a more comprehensive overview that allows us to determine a company’s “quality”, as well as risks and opportunities, giving us a competitive edge. As stewards of capital, we seek to preserve our clients’ long-term interests by investing in companies that, in our view, can deliver sustainable financial returns. We believe our concentrated approach is a key factor in creating sustainable value and inspiring investor confidence.
Where do you see yourself in 5-10 years
You see yourself as a senior financial analyst who has gained extensive experience and expertise in your field. You have worked on various projects and assignments for different clients and industries, and have delivered high-quality results and recommendations.
You see yourself as a leader and mentor who has developed strong relationships with your colleagues and managers. You have also contributed to the growth and success of your team and organization by sharing your knowledge, insights and best practices.
Tecan
company that specializes in the development, production, and distribution of automated workflow solutions for laboratories in the life sciences sector.
Paramit
Paramit develops and manufactures medical devices and life sciences instruments. The acquired Group provides its customers with
fully integrated engineering, initial product design, prototype development, commercial scale manufacturing, test solutions and
assembly services.
