Investment Philosophy

Contrary to widespread market views, we believe that significant value lies hidden in large, complex companies that are difficult for the market (and sometimes even insiders) to understand. In many cases this can be unlocked through the sort of commitment and proactive involvement one more usually finds in private equity.

Accounting consolidation makes many complex companies look simpler than they really are. This is important given the way the market relies on consolidated data for valuation purposes.

Value can be released by restructuring – changing strategy, capital structure, capital expenditure plans – but overcoming inertia requires support from multiple stakeholders since shareholders generally have limited
influence over the largest companies.

This includes regulators, politicians, unions, journalists and other stakeholders whose influence can, at times, be greater than that of any group of shareholders.

Knight Vinke specializes in building such coalitions based on the quality of its analysis, its network of institutional contacts and the credibility associated with its 13 year track record – rather than the size of its holdings.

Investment Philosophy