Investment
Our
Philosophy
We believe that investing in growing and expanding companies is the best way to generate superior long-term returns. The core tenets of our philosophy are:
- Returns on Capital are Greatest Where Capital is Most Scarce – We believe that the best opportunities exist where expectations are the lowest. High expectations equal high risk.
- The Importance of Risk Control – Our approach demands a margin of safety before we invest. We believe that preservation of capital is the essential component of durable long-term investment success. This is often a direct function of a manager’s ability to avoid investments where optimism is high and valuations are demanding.
- Research Matters – There are no shortcuts to good small-cap stock-picking. Lack of attention and analyst coverage creates persistent pricing inefficiencies. We seek to build an information edge by performing thorough fundamental research.
- Value Then Growth – We combine the discipline of a value investor with the imagination of a growth investor. This approach controls risk while capturing the significant growth potential of up and coming companies.
Our Strategy
We focus on acquiring companies and businesses which we expect can provide positive returns within the short to medium term, coupled with long-term capital appreciation.
These companies are likely to be high-growth companies with attractive valuation, both local and abroad. These investments may take the form of:
- Ordinary shares;
- Preference shares; and/or
- Any other instrument/arrangement deem fit and appropriate for the company.
Our Criteria
SRB may invest in companies, businesses and/or assets that comply with Shariah principles and meets any two of the following criteria
-
- Companies/businesses that have or are acquiring revenue-generating assets;
- Companies that have or are acquiring existing profitable assets;
- Companies/businesses/ assets that have strong cash-flow, with proven annual earnings.
- Companies/businesses that have sufficient underlying assets to match the investment to be made by SRB such that, the net tangible asset or market value ascertained by qualified auditors is at least 50% more than the value of investment to be made by SRB subject to the approval of her Board of Directors, SRB may use up to 20% of its investment fund in start-up companies or new business ventures that has yet to generate any revenue or profit but with growth prospect; provided that the commercial activities to be undertaken by the start-up companies or new business ventures comply with Shariah principles.
Our Decision Flow
It is a compulsory process that proposed investment opportunities be subjected to the assessment and evaluation of our qualified in-house Shariah Panel for compliance with Shariah principles.
The investment proposal can only be tabled to the Investment Committee for final deliberation upon satisfactory conclusion of the due diligence exercise and positive clearance from the Shariah Panel and our investment analysts on compliance with Shariah principles.
Thereafter, if deemed fit and suitable, the investment Committee shall make a recommendation to the Board of Directors for approval to invest.
