The Nitrogen Fund Manager’s investment philosophy is underpinned by a detailed fundamental understanding of the equity market and the companies that make up the market. This includes a deep understanding of the macro factors driving valuation and overall economic trends as well as a detailed understanding of the individual characteristics of each share that may be traded. Over the course of the management of the Nitrogen Fund, the Fund Manager has developed a rigorous investment evaluation process. In-depth industry, competitor and company (including valuation and investment modeling using a robust economic model) analysis is undertaken to gain an in depth view on the valuation of a stock.
The Nitrogen team believes that there are persistent structural inefficiencies in stock markets and there is systematic mispricing in trading situations and value type shares. These inefficiencies have been evident in the market for many years and Nitrogen expects these inefficiencies to persist due to the behaviour of market participants. The Fund takes advantage of this systematic mispricing of assets in the equity markets to deliver consistent superior risk adjusted returns to Investors. Based on this investment philosophy, the Fund has a value bias based on risk arbitrage where risks have been mispriced, thereby presenting attractive investment opportunities for the Fund. The Fund Manager continues to successfully exploit these inefficiencies, validating the opportunity to deliver superior risk adjusted returns to Investors by taking advantage of these market anomalies.