Where possible, the strategy mitigates potential risk by looking for stable and aligned management teams, conservative balance sheets and avoiding single points of failure.
The portfolio is segmented into three types of investment opportunities:
- High quality growth companies
- Stable compounders
- Low risk turnarounds
Fairlight does not invest in sectors of the market that do not meet its quality criteria including cyclical business (commodities and mining) and interest rate sensitive businesses (banks and utilities).