Our Investment Approach
Through our fundamental, opportunistic, value-oriented approach we seek attractive, long term, absolute returns. We invest alongside our client partners, ensuring strong alignment of interests.
Our investment process is thorough, creative and flexible, not formulaic or rigid. As a result, our portfolio looks quite different (more eclectic, less market dependent) from that of a typical equity fund.
We manage high conviction portfolios, concentrating our capital in our best ideas.
We always invest fully prepared for adverse scenarios to unfold. Avoiding and managing risk is an obsession for us; we apply sound judgement and common sense to our assessment of risk.
We look for a large margin of safety between price and underlying value. Our aim is to invest in securities trading at wide discounts to underlying value with downside often protected by tangible asset backing and/or strong free cash flow generation.
Lanyon considers itself an owner of stakes in companies, not a speculator in securities. We undertake a strategy of constructive active engagement with our portfolio companies. We will look to build constructive, long-term relationships with management teams and boards. If required, we look to work positively with our portfolio companies to encourage the implementation of value-enhancing strategies.
The investments in our portfolio can be more complex, out of favour or ignored or could be experiencing temporary duress. Investment opportunities often have strong catalysts for the realisation of underlying value.
When we find great bargains, we buy them. We do not speculate, we do not use derivatives. We are long-only investors.