About Centreville Partners

Investment Methodology

Our proven investment style: Through identification of long term trends in underinvested geographies, it is possible to achieve exceptional returns uncorrelated with broader market indices. This combined with a rigorous due diligence process that leverages an extensive relationship network in emerging and frontier economies, means we are able to recognise outstanding opportunities on a risk adjusted basis.

The process naturally requires comprehensive research and a thorough understanding of the market in question. We believe and undertake on the ground search as it is essential to best evaluate the unique risk and reward profiles associated with the investments.

BESTFIRM - each letter represents a concept / investment technique that is vital to successful investing in the emerging markets.

• Building blocks - relates to the initial formation of a stock market in a developing country I.e economic, political, legal, institutional and regulatory environments, and interest rate, exchange rate, taxation, institutional investors and foreign participation policies.
• Economic analysis - in the emerging market is similar to that of developed market except for the amount of tools / indicators available meaning extra care needs to be taken on data interpretation.
• Sector analysis - the purpose is to find sectors that may be priced less efficiently than the larger capitalised stocks.
• Technical analysis - even more relied upon in emerging markets due to higher level of volatility, lack of available information and the perception of less efficient markets.
• Fundamental analysis - financial analysis is an informative and predictive function in the investment process. It quantifies the expectation of the future using date from the past and expectations of the future.
• Information - in conducting analysis of the worlds top investors there is one predominant attribute that links sometimes diametrically opposed investment philosophies and that is an abundance of information.
• Risk analysis - both political and economic analysis is more utilized in emerging markets for obvious reasons.
• Management appraisal - ownership structure - investment in a company with strong, clear management and ownership structure is essential to the success of the company. In Asia however the owner manager scenario is more the norm rather than the exception and this can cause problems and conflicts with other company shareholders.