Lanyon is a deep value investor, focused on the preservation of capital.
Through our fundamental, opportunistic, deep-value approach we seek attractive, long term, absolute returns.
Our investment process is thorough, creative and flexible, not formulaic or rigid. As a result, our portfolio looks quite different (more eclectic, less market dependent) from that of a typical Australian equity fund.
We concentrate our capital in our best ideas. When we are unable to find compelling investment opportunities, or when great opportunities are scarce, we choose to hold cash.
We always invest fully prepared for adverse scenarios to unfold. Avoiding and managing risk is an obsession for us; we apply sound judgment and common sense to our assessment of risk.
We look for a large margin of safety between price and underlying value. Our aim is to invest in securities trading at wide discounts to underlying value with downside protected by tangible asset backing or strong free cash flow generation.
The investments in our portfolio tend to be more complex, less liquid, and less widely analysed companies. Often, but not always, our investments are in the small and mid cap area of the market where such opportunities are more prevalent.
Investment candidates are typically out of favour or ignored and can be experiencing temporary duress. Investment opportunities often have strong catalysts for the realisation of underlying value.
When we find great bargains, we buy them. We do not speculate, we do not use derivatives. We are long-only investors.