Our Method
Our Method
“Our holdings are based on Garn's method –
weaving deep fundamental analysis with operational insights.”
”Our holdings are based on Garn's method – weaving deep fundamental analysis with operational insights.”
Garn’s Method
Using Garn's method, we identify investment universes and individual companies where we possess an information advantage. This advantage ensures great potential for value creation over time.
Garn’s Method
Via Garns metod identifieras investeringsuniversum och enskilda bolag där vi har ett informationsövertag. Övertaget säkerställer stor potential för varaktigt värdeskapande.
Garn’s Method
Using Garn's method, we identify investment universes and individual companies where we possess an information advantage. This advantage ensures great potential for value creation over time.
“By evaluating Garn's strength, in each part of the method, a total is obtained.
The total is used to compare our information advantage, against other investors,
and the potential surplus value of the investments.”
”Genom att värdera Garns styrka, i respektive del av metoden, erhålls en total.
Totalen används för att jämföra vårt informationsövertag, kontra övriga aktörer, samt investeringarnas potentiella övervärde.”
Finding the Investment
To achieve excess returns, the investor needs to take contrarian positions, often against both the market and the analysts.
This is achieved through focused work, challenging both the company's and the analysts' thesis. In a few cases, the work leads to an information advantage.
Through the information advantage, a value arbitrage can be ensured. This secures both attractive returns and the principle, at the time of investment.
Optimal environments for arbitrage are:
– Complex and volatile segments.
– The late stages in the capital cycle.¹
– Limited liquidity and low institutional ownership.
Garn currently invests in the following segment/s that fulfil these criteria:
Retail and Consumer.
1. Chancellor, E. (2015). Capital Returns: Investing Through the Capital Cycle:
A Money Manager’s Reports 2002-15.
By evaluating Garn's strength, in each part of the method, a total is obtained.
The total is used to compare our information advantage, against other investors,
and the potential surplus value of the investments.
Finding the Investment
To achieve excess returns, the investor needs to take contrarian positions, often against both the market and the analysts.
This is achieved through focused work, challenging both the company's and the analysts' thesis. In a few cases, the work leads to an information advantage.
Through the information advantage, a value arbitrage can be ensured. This secures both attractive returns and the principle, at the time of investment.
Optimal environments for arbitrage are:
– Complex and volatile segments.
– The late stages in the capital cycle.¹
– Limited liquidity and low institutional ownership.
Garn currently invests in the following segment/s that fulfil these criteria:
Retail and Consumer.
1. Chancellor, E. (2015). Capital Returns:
Investing Through the Capital Cycle:
A Money Manager’s Reports 2002-15.