Fountainhead offers a patient and un-complicated equity investing approach;
Fountainhead aspires to share an investment opportunity that is built on business ownership approach of value investing principles, finding growth in secular societal trends, unleashing little known compounders and avoiding large drawdowns of capital.
Focus on Quality:
Compound capital in non-technology growth companies with sustainable and profitable business models around the world.
We don’t chase returns and are comfortable having large cash positions during time of stock market exuberance. Strive to insure against impact of large stock market drawdowns on portfolio with hedging.
We avoid fads and indices and diversify globally into listed companies that are off radar from mainstream investors. Our historical returns are less then 50% correlated with broader equity markets
Low turnover + strong temperament enable us to have a 3 to 10 years investing horizon based on company fundamentals.
High Class investment platform:
Fountainhead provides its investors a world class investment platform that partners with only Tier-1 highly credible service partners.
INVESTMENT STRATEGY & PROCESS
Our investment approach is multi-thematic
What is Thematic Investing
Working out the footprint of 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 governments ability to hurt meaningfully.
Determine themes life cycle stage:
Early, Developing, Popular, Mature.
Determine the best sector:
Themes open opportunities across sectors which are within in our circle of competence.
Our circle of competence:
Demographics, Banks, Energy, Medical devices, Diabetes, Consumers, Central banks, Fiscal policies, Emerging Markets.
Select companies: focus on companies that are off of main-stream radar.
Swing decisively when odds are in our favor
How de we pick stocks across our themes i.e. our bottom-up process?
What to buy:
We usually buy “great business at reasonable price” and “beaten down stocks” with our themes.
Where to fish:
We focus in less competitive areas of market, or off the radar companies. Our starting point is industry publications to look for trends and opportunities.
Our goal is to identify companies with following features:
- GOOD DAYS: Businesses entering “scalable” period with potential to grow from small to mid to large cap.
- CEILING: Mid to large cap businesses with “stable” return on capital and “low risk” of disruption.
How to buy:
Is the business serving an unmet demand of the society, has good economics and/or has a moat? Is management able?
When to buy:
Is there double digit return p.a. over long term? Is there a gap between Fundamental Valuation vs Price implied by the market?
Companies we usually invest in are:
- Entering “Scalable” period with potential to migrate across market caps.
- Hitting “Ceiling” and Large caps but with stable returns on capital and low risk of disruption.