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Diversified Equities

Seeking exposure to high-quality businesses

 

Our approach to equities investment is to seek exposure to a range of high-quality businesses capable of compounding shareholder wealth at superior rates of return over the long term.

Atrium invests sensibly in high quality, well run companies for the long term. Experience tells us that these companies are well positioned to produce attractive returns for investors over our investment horizon.

 

The decades of experience within our investment team and our targeted fundamental investment approach enable us to identify the investment opportunities that will create long term wealth for our clients.

 

From this Atrium constructs concentrated equity portfolios from high conviction ideas providing exposure to the best opportunities of our stock selection process.  Our portfolio construction process aims to provide exposure to a broad range of market sectors, minimising the potential negative effects of market or industry specific shocks. This reduces the potential for concentration risk, which results from investing in limited sectors or companies.

Investment Approach to Equities

To identify and invest in high quality businesses that will compound shareholder wealth at superior rates of return over the long term. Valuation matters, and is central to achieving our investment objectives.

Atrium Equity Opportunity Fund

Investment Objective:

The Atrium Equity Opportunities Fund aims to generate attractive absolute returns for investors over the medium to long term. The Fund is benchmark unaware, however in delivering attractive absolute returns we expect the portfolio will outperform the market benchmark over the medium to long term.

Investment Strategy:

The Fund provides exposure to a concentrated portfolio of companies that Atrium believes are high quality businesses.

The key investment characteristics we look to identify a high quality company include:

  1. A sustainable business model with a sustainable competitive advantage
  2. Reasonable predictability of earnings and cash flows – we require a reasonable degree of confidence that our forecasts will be correct or bettered over time
  3. The ability to generate a return on capital above the cost of capital, and ideally with the ability to reinvest at incrementally higher returns
  4. An appropriate capital structure that comfortably accounts for the inherent volatility of cash flows required  to service any debt obligations
  5. An experienced and capable management team and board that we are confident will seek to maximise returns for shareholders

An investment opportunity exists when we identify a high quality company that is trading at an appropriate risk adjusted discount to our assessment of its intrinsic value, so as to provide a reasonable margin of safety.

Atrium believes that investing in high quality companies at attractive valuations will result in a compounding of shareholder wealth at superior rates of return over time.

For more information on investing in the Atrium Equity Opportunity fund, please contact: info@atriuminvest.com.au