“The future is never clear, you pay a very high price for cheery consensus, uncertainty is actually the friend of the buyer of long term values”

Warren Buffett
The word partnership plays a critical and we believe differentiating role in our business. We believe very firmly in the concept of “eating our own cooking” and will at all times have the majority of our money invested in the fund. Furthermore it is a partnership between the investee companies and us
The fact that we have the whole world to choose from is an asset not a hindrance. Due to our concentrated nature we need not hold hundreds of stocks but have the flexibility to select only the very best available and are not constrained by geographical or benchmark boundaries

For us cash is king. As part business owners of the companies in the fund, we focus exclusively on the amount of owners cash flow we receive each year. Simplistically this is the surplus cash that the business produces after having reinvested capital to sustain and grow current operations as well as expand into new ones. We are very careful in our analysis of the motives and skill of management teams. Ultimately they are the stewards of our capital and play a critical role in value creation for shareholders. We use both qualitative and quantitative factors to derive an intrinsic value for our universe. We only invest once a company passes our quality and valuation criteria of price/intrinsic value (P/V) of < 0.6. Our companies ability to grow cash flows and hence intrinsic value through time is the engine for partners value creation. All that is required is patience while the valuation gap closes.

The Fund and Investing

The Partners Fund is registered in Guernsey and approved and regulated by the GFSC.

The fund is specialized in nature due to the concentration of the fund. The only concentration rule is that no position can be bigger than 20% of the net asset value of the fund.

The fund does not use leverage or short individual equities.

For further details please read the Scheme Particulars available under the download section or by clicking here

This also includes details on the structure, pricing, investment and divestment procedures