Our investment strategy can be characterised as ‘value with a catalyst’.
Monolith applies a ‘value with a catalyst’ approach and invests mainly in undervalued companies whereby clearly demonstrable catalysts can be defined which justify the expectation that the undervaluation of these companies could disappear in the foreseeable future. Our strategy is based on the conviction that stock markets occasionally are inefficient with regard to the pricing of individual shares and that above average returns can be obtained by exploiting imperfect information and analyses in the stock market. Particular emphasis is placed on the selection of individual shares. Monolith will pursue to compensate for market imperfections, primarily through in-house research and analysis
This encompasses direct contact with senior management of companies, their competitors and other stake-holders in their relevant vicinity. Furthermore, investment decisions are based on proprietary valuation models which aim to determine the correct fair value of a company with emphasis on absolute – as opposed to relative – valuation criteria. When considering when and in which case we convert our assessments into investment decisions, we will check if there are catalysts which can rectify the incorrect valuation of a share on the stock exchange in the foreseeable future
Drs. F. Tuin
Fokko has worked with smaller listed companies his entire professional life. Initially as an equity analyst at Bank Mees & Hope and later at Kempen & Co. From the early nineties until his retirement in 2002 Fokko was responsible for the daily management of several highly successful small cap portfolios, including the acclaimed Orange Deelnemingen Fund. He is highly experienced with regard to investment processes and has thorough knowledge of many listed small caps. Fokko acts as a sounding board for the fundamental research and selection by Monolith.
Drs. M.H. Wildschut CFA
Maarten managed the European small cap funds and institutional mandates at Robeco until 2005. He is currently co-head of the English RWC European Focus Fund, one of the leading shareholder engagement funds in Europe. RWC took over this fund, including Maarten and his team, from Hermes Asset Management in 2012. Given the fact that the team has a similar strategy as Monolith, he provides a significant contribution in terms of stock selection and ensuring an effective dialogue with the companies in which Monolith invests.