Investment Approach

Our Philosophy

We believe that over the long term, fundamental factors drive share prices and that these factors are best analysed within an industry framework. Within this framework, we seek to identify companies whose share prices do not fully reflect either their position as industry winners, or their potential to become significantly stronger players within their field of operation.

In the majority of cases we believe that good companies deliver superior investment performance over the longer term. However, there are also significant opportunities to make money by investing in companies which are the subject of advantageous external dynamics. These dynamics might stem from developments in the economy, society, innovation, from within the industry itself or from the way which investors value companies.

Thus the identification of “best in industry” characteristics, together with an assessment of the catalysts which are re-shaping the competitive landscape, assist us in picking stocks with growth potential. A comparison of valuation metrics across the peer group allows us to highlight situations where this potential is not fully recognised by investors.

Our Technique

At South River Asset Management we prefer to think of our approach as a technique not a process. This means we are constantly looking to refine it, hone it and improve it to provide in much the same way as a successful business, orchestra or any team across other fields does.  This means constantly challenging ourselves, our views and our analysis to minimise mistakes and give ourselves the highest chance of success.

Ideas are discussed in an informal collegiate environment, with managers doubling up as analysts to ensure a thorough and properly thought out assessment of an industry and business and prospects.

Our individuals have built an expertise in many investment fields and a management style that encourages their views to be expressed and debated in a productive way. We aim to place the key criteria of seeking out successful companies in the context of the market’s constantly changing dynamics.

At its heart we believe each investment decision is driven by a simple concept– to buy an asset that is undervalued relative to its peers and its prospects. Understanding why the asset is relatively cheap requires a disciplined fundamental approach to investing, while understanding investment dynamics, volatility and risk enables an insight into how that asset price will move to close the undervaluation. We aim to find businesses whose characteristics identify them as undervalued relative to peers and prospects with catalysts that will initiate a revaluation.

The information on this site is not available for private investors and is restricted to Professional Investors.

South River Asset Management Ltd is registered in England and Wales (Number 04195976). South River Asset Management Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with its registered office at 1 King Street, London, EC2V 8AU. The information on this website is directed only to eligible professional investors. Please satisfy yourself that you are eligible to make such investments before accessing this information. You must read the following information before proceeding, as it enables the legal and regulatory restrictions which apply to both the information contained and investment products referred to within this website. To enter this website your browser must have cookies enabled or you will not be aware of important regulatory information. The information on this website constitutes a financial promotion and has been issued and approved by South River Asset Management Ltd for the purpose of Section 21 of the Financial Services and Markets Act 2000  and does not, in any way, constitute investment legal or taxation advice. South River Asset Management Ltd’s details are set out in the FCA register and our FRN number is 197097. You hereby agree that any dispute arising from your use of this website or the information it contains, will be subject to the exclusive jurisdiction of the English Courts. This website is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission of South River Asset Management Ltd. Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide for the future. Returns from the structured products are at risk in the event of any of the institutions who provide securities for these products default on their financial obligations. Any decision to invest should be based on the information contained in the relevant term sheet or prospectus (and any supplements thereto) of the relevant product which includes information on certain risks associated with an investment.

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