Eiger’s underlying investment philosophy is based on price to intrinsic value. We believe that the Australian equity market is inefficient, and consequently opportunities exist to create value through active management. This opportunity is particularly pronounced in the less researched, small cap segment of the market.
The price to intrinsic value investment philosophy is based on the following:
- Intrinsic value is determined by the fundamentals that drive a security’s future cash flow;
- Discrepancies between market price and intrinsic value arise from market behaviour and market structure providing opportunities to outperform;
- A truly integrated approach can produce superior research;
- Attention to risk management and a strong knowledge of clients are critical for superior portfolio construction; and
- A team of investment specialists working together create the best environment to deliver consistent results.