Menu
Our investment philosophy at Genos is simple. Buy income generating assets, mainly corporate bonds and equities, at a discount to intrinsic value significant enough to provide a comfortable margin of safety to reduce our risk of permanent loss of capital while earning a satisfactory expected return.
We know that we have absolutely no control over the market price and therefore do not time the market. We only care if the price is low enough to entice a purchase, or high enough to sell our interest and we rely on the dictum that if we are right about the fundamentals of the company the market price will eventually agree with us. We do not use any leverage or derivatives, nor do we go short the market and are therefore free to operate without exposure to market volatility. This allows us to have a long-term mindset and hold until we believe value has been realized.
Balance sheet value: Firms that trade at a discount to their readily available net asset values / liquidation value but do not earn high returns on capital deployed and whose margins are usually comparable to the industry average. These are usually average quality companies selling at great prices. Value in these types of investments is realized through asset liquidations and special distributions / share buybacks / dividend payments.
Income Statement value: Firms that trade at a premium to book value but at a discount to their future earnings power. These are usually high-quality companies selling at decent prices. Companies such as these are usually asset – light and consistently generate lots of cash year after year, require minimal reinvestment into the business and can distribute a large proportion of the cash generated to investors as dividends.
We invest if we believe the business to have some type of competitive advantage that will protect its earnings power over our investment horizon.
We consider companies that have
a management team in place who
is honest, able and who have proven themselves to be shareholder friendly.
We are valuation sensitive. We will invest only if the market price gives us a significant discount to what we believe to be a conservative estimate of intrinsic value.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
“The information contained on this website is for general information purposes only. The transmission and receipt of information contained on this website, in whole or in part, or communication with Genos Investments via the Internet or e-mail through this website does not constitute a direct or indirect offering or placement of the units of Genos Investments RAIF V.C.I.C. PLC. The material on this website should not be construed as an invitation to subscribe to the units of Genos Investments RAIF V.C.I.C. PLC. We disclaim all liability in respect to actions taken or not taken based, or for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with any or all the contents of this website, to the fullest extent permitted by law. Any reliance you place on such information is therefore strictly at your own risk. Do not act or refrain from acting upon this information without seeking professional legal counsel.”