Refocus

REFOCUS

REFOCUS describes the thinking behind selected recent management actions and provides context to current positions against the backdrop of a global investment opportunity set.

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  • Richard Court

    Scale: Bigger Isn’t Always Better

    Richard Court - August 2018

    Portfolio manager and analyst Richard Court discusses the circumstances under which size or scale translates into a durable competitive advantage for a business. He contrasts the benefit of economies of scale with the drawback of diseconomies of scale, outlines examples of both, and concludes with a new investment recently added to the RECM Global Fund where the company’s scale does actually contribute to our classification of it as a quality business.

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  • Piet Viljoen

    Bad Blood

    Piet Viljoen - June 2018

    Portfolio manager Piet Viljoen discusses the events at Steinhoff, and how the human condition may have contributed to investors being misled by the likes of Markus Jooste in what is alleged to be the biggest fraud in South African corporate history. He talks to how we should use the Steinhoff debacle as a learning opportunity, and summarizes RECM’s main learnings at this stage.

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  • Piet Viljoen

    Boring is Better

    Piet Viljoen - March 2018

    Portfolio manager Piet Viljoen discusses how RECM has renewed its commitment to the principles that allowed RECM to successfully grow and protect investors’ wealth during the first decade of its existence. These principles include: an unwavering commitment to value investing, applying a sensible investment process based on what works in investing over the long term and working for a group of clients that understands what we are trying to do for them.

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  • Piet Viljoen

    Searching for the Proverbial

    Piet Viljoen - July 2017

    Portfolio Manager Piet Viljoen discusses how markets are the most efficient – when prices reflect underlying intrinsic value - when there is a diversity of opinions and healthy incentives are in place that reward investors for being right, and penalize others for being wrong. The current combination of quantitative easing having removed these incentives, and the growing popularity and conforming trend towards passive products, is driving markets to be inefficient at both ends of the spectrum.

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