The Electus approach to investing
Our key focus is on bottom-up investing, where we analyse, value and invest into companies based on a normalised level of sales, margins, profits and cash flows. As an example of this process in action, in 2007 to mid- 2008 we were able to avoid investing additional client funds into the resource and construction companies. During this time there were super-cycles in place, which led to well above 'normal' level of global commodity prices and South African fixed investment spending. While the top-down environment for global commodity prices and South African fixed investment spending looked very attractive in 2007 to mid-2008, at Electus we only invest in companies when the bottom-up valuations (using metrics indicated above) are attractive.