Edgbaston is a bottom up, value investor focused on the entire spectrum of market capitalisation of stocks in developed, emerging and frontier markets in the Asia Pacific ex-Japan region. The firm’s investment style has a strong price discipline and an income bias. Securities in the Investment Programme are typically attractive on the basis of classic valuation measures such as DY, P/E, and P/B. All of Edgbaston’s investment decisions are made with a long investment horizon.
Edgbaston’s investment philosophy focuses on three types of risk: valuation risk, business risk, and balance sheet risk. Of the three, valuation risk is considered the most important. High valuations lower the margin of safety inherent in the purchase price of an investment. Business risk is weighed against balance sheet risk.