Eiger’s underlying investment philosophy is based on price to intrinsic value. This philosophy is based on the principle that a company’s value is determined by the fundamentals that drive its future cashflows. Discrepancies between market price and intrinsic value arise from market structure and market behaviour, such as over reaction to short term noise or under reaction to structural change, providing opportunities to outperform.
Eiger believes 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.
Eiger uses a disciplined, repeatable process to systematically apply the investment philosophy using its own proprietary valuation system and 9 quality “commandments”, developed over many years of investment experience, paying strong attention to risk management.