INVESTMENT PROCESS


NCMF has a broad investment universe. NCMF is not restricted by specific geographical regions, specific industries or sectors. NCMF only makes investments when its investment criteria are met.

NCMF has built a list of companies in which NCMF wishes to invest when the price is right. We continuously monitor this list and add and remove companies as part of an analysis process that can both identify new quality companies and companies which can no longer maintain this designation. Similar, we continuously screen the stock markets for interesting investment opportunities among the group of companies that are more ordinary and that contain a potential event for narrowing the spread between market value and intrinsic business value over a short number of years.

The companies that make the list will be subjected to in-depth analysis. NCMF reviews all publicly available legal company documentation, research documents, industry-specific documents, newspapers and magazines and other articles/written materials about the companies. In some cases, we interview board members, the management and employees of the companies. NCMF does not invest in any companies without understanding their business model, competitive situation and financial structure.

At the same time, we continuously monitor the companies in which NCMF has invested. The fundamentals of these companies as well as their valuation are compared with the companies’ characteristics and criteria on the list. It is an iterative process that is disciplined, detailed and repetitive.

 
We regard patience as a virtue. We will demonstrate patience when we have invested in an undervalued company and the market price does not reflect the company’s intrinsic business value. We will also demonstrate patience when we find it more difficult to locate companies that meet our investment criteria.
Letter to Shareholders Nielsen Global Value 2006

 

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