We consider both quantitative and qualitative factors. Most importantly:

 

     (1) Business quality: including normalized returns on capital, competitive position, business opportunity,                 financial resources, and sustainability of franchise

     (2) Valuation: the market price of the shares in relation to future business potential, including growth

 

Opportunistic concentration: We believe exceptional investment opportunities in equities are rare, and that once found should be made into large investments that can drive portfolio returns. There are two characteristics that define 'exceptional investment opportunity' for us:

 

• The opportunity for a large excess return exists and

• The risks are asymmetric, favoring the upside over the downside

 

Coanjo has the willingness to:

• Take large, concentrated and differentiated long and short investment position to generate attractive returns, and

• Recognize that such opportunities are often not available