INVESTMENT CRITERIA
JBS Investments invests in world-class businesses with durable competitive advantages. These companies have a competitive moat, are well-managed and have a demonstrated track record of creating shareholder value.
Investment philosophy
We employ a consistent, disciplined and business owner-like approach to investing with a focus on traditional value plays and situations in transition. We seek to invest in misvalued companies that are misunderstood or undergoing structural change.
The key attributes of the investments in our long-biased concentrated portfolio include:
- Quality businesses typically earning high returns on invested capital with significant barriers to entry and predictable and reliable cash flow generation.
- Easy to understand businesses operating in industries with which we are comfortable.
- Businesses that have compelling valuations with attractive risk / reward profiles and high margins of safety.
The businesses we target are typically mispriced for a range of reasons:
- businesses or industries in transition
- temporary financial underperformance
- lack of Wall Street coverage
- businesses facing capital structure challenges
- situational complexity.
Investment criteria
High quality companies
We seek companies with the following economic characteristics:
- Sustainable high returns on capital
- Meaningful growth prospects
- Pricing power
- Recurring revenue
- Strong balance sheets
- Low capital intensity
Investment universe
Carefully designed universe of small and mid-cap companies with a bias towards US$300 million to US$15 billion market capitalization, and flexibility to look outside of this range.
Target portfolio parameters
Concentrated investments in our highest conviction ideas with no more than 30 investments.
Investment objective
Selective approach investing in three-to-five core long investments each year