Our investment strategy can be characterised as ‘value with a catalyst’.
Monolith applies a ‘value with a catalyst’ approach and invests mainly in undervalued companies whereby clearly demonstrable catalysts can be defined which justify the expectation that the undervaluation of these companies could disappear in the foreseeable future. Our strategy is based on the conviction that stock markets occasionally are inefficient with regard to the pricing of individual shares and that above average returns can be obtained by exploiting imperfect information and analyses in the stock market. Particular emphasis is placed on the selection of individual shares. Monolith will pursue to compensate for market imperfections, primarily through in-house research and analysis
This encompasses direct contact with senior management of companies, their competitors and other stake-holders in their relevant vicinity. Furthermore, investment decisions are based on proprietary valuation models which aim to determine the correct fair value of a company with emphasis on absolute – as opposed to relative – valuation criteria. When considering when and in which case we convert our assessments into investment decisions, we will check if there are catalysts which can rectify the incorrect valuation of a share on the stock exchange in the foreseeable future