The Fountainhead Partnerships Fund is focused on understanding long term investing themes. Our strategy is to achieve high risk-adjusted returns on capital for our clients by investing in a reasonably diversified portfolio of great businesses, exposed to long term societal trends. With this focus on long term returns we actively hedge the economic recession risk and take advantage of market volatility to deploy capital.
Our investment approach is multi-thematic
What is Thematic Investing
Working out the footprint of secular growth investment opportunities in multiple sectors across the globe, connected through a common theme.
Identifying the themes
Attractive themes have three attributes:
- Scarcity: Secular demand-supply gap.
- Scalability: Improve society’s standard of living.
- Independence: Beyond government’s ability to hurt meaningfully.
Determining the themes’ life cycle stage
Early, Developing, Popular, Mature.
Determining the best sector
Themes open opportunities across multiple sectors within in our circle of competence.
Our circle of competence
Aging demographics, medical devices, diabetes, consumers, experiential economy, energy, financials, monetary and fiscal policies.
Select companies: focus on companies that are off of the mainstream radar.
Size up
Swing decisively when the odds are in our favour.
How do we pick stocks across our themes
What to buy
We usually buy “high quality businesses at reasonable prices” and “beaten down stocks” within our themes.
Where to fish
We focus on less competitive areas of the market, or off the radar companies. Our starting point is industry publications to look for trends and opportunities.
Narrowing down
Our goal is to identify companies with the following features:
- GOOD DAYS: Businesses entering their “scalable” period with potential to grow from small to mid to large cap.
- CEILING: Mid to large cap businesses with “stable” returns on capital and “low risk” of disruption.
How to buy
Is the business serving an unmet demand of the society? Does it have good economics and/or a strong moat? Is management able?
When to buy
Is there a double digit return p.a. over the long term? Is there a gap between Fundamental Valuation vs Price implied by the market?
