The High Conviction AMC consists of 10 stocks or funds that represent our highest convictions. Its aim is to achieve attractive long-term performance. We analyse top-down factors, considering global developments and macroeconomic trends that could affect there turns of individual companies. Based on this analysis, we assess the likelihood of whether particular companies will benefit from these trends.
Major global trends, such as progress in technology, sustainability and electric vehicles are resulting in an explosion in the number of new start-ups and changes in which companies are global leaders. Many old companies are losing ground to new firms, while new sectors are growing in size at the expense of others. These global changes are leading to huge shifts in valuations and price trends. Our goal is to identify them and thus create value for our investors.
We screen companies benefitting from these trends in order to identify firms that are attractively valued, solidly positioned and managed in the interests of their owners. We attach considerable importance to companies standing out from the competition and having something of a monopoly position in the area they operate in. We also want to see a strong management team. We pay attention to factors such as a promising strategic direction, a robust balance sheet and stable cash flows.