“Lion Capital manages in-house investment portfolios applying similar objectives to those of the corporate advisory practice. We take a long term approach and value the relationships we build with the management of the businesses we invest in.”
Lion Capital manages its investment portfolios with the twin objectives of preservation of inflation-adjusted capital and the earning of attractive absolute returns comfortably in excess of returns achievable on short-term money market instruments.
While no limits are placed on investment candidates, portfolio investment opportunities are typically sourced within Australia from listed and unlisted companies, direct and syndicated property, fixed income and money market securities. In addition to managing in-house portfolios we also make investments in syndicates with like-minded investors enabling Lion Capital and its co-investors the capacity to invest in larger scale opportunities than would be available to syndicate members individually.
Our approach seeks to earn attractive long-term returns from a highly concentrated portfolio of carefully handpicked investments.
The stock selection process is highly research-intensive and seeks to identify often smaller capitalized companies that have potentially superior medium to longer-term prospects not identified or fully appreciated by other investors. Our preferred investment candidates typically satisfy the following criteria:
- We must be able to understand the business & key drivers
- Management and Board must be capable of delivering and strongly aligned to investors
- The competitive advantage must be sustainable
- Returns must be high and, or rising to, well above cost of capital with opportunities to invest further
- Financial structure must be strong enough to provide flexibility and opportunity
- Entry price must be at a level that provides asymmetric upside risk with limited downside
Patience and discipline have served us well.
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