Strategy

Our investment strategy can be characterised as ‘value with a catalyst’.

UNIVERSE

QUOTED WEST-EUROPEAN SMALL CAPS

Strategy

Value With a Catalyst

1. Research approach
  • Value oriented with a focus on companies which (should) consider changes or implement changes
2. Selection
  • Bottom-up
3. Actively unlock value process
  • Pro-active shareholdership: when necessary, initiate the process of unlocking value

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

A Concentrated
portfolio

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Monolith
and sustainability

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Advisory Board

Companies in the portfolio

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