Elevation Capital was founded in 2007 by Christopher Swasbrook, Craig Stobo and Andrew Harmos. Elevation Capital is a true boutique that is still majority owned by its directors and executives today. The Firm is a ‘value oriented’ global investor who seeks to invest in undervalued companies.
We believe by maintaining a more global focus there is a greater opportunity set to invest in truly world-class companies with attractive long-term fundamentals while at the same time (in our opinion) reducing investment risk for our clients. We believe that when you are several thousand miles away from Wall Street in a different nation, it’s easier to be independent and buy the things other people are selling, and sell the things that other people are buying.
Importantly, all director and executives are investors in the Elevation Capital Value Fund on the same terms as all other investors. Executives can only invest in the Elevation Capital Value Fund and accordingly all invest at least 10% of after tax salaries into the Fund on a monthly basis. Creating the ultimate alignment of interest with investors.
Elevation Capital’s small focused team’s deep fluency in global investing and focus on transparency culminates in the publishing of our research in the public domain – available here.
The Elevation Capital Value Fund was awarded the Morningstar International Equities Category Fund Manager of the year 2017, New Zealand.
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The Elevation Capital Value Fund is a Portfolio Investment Entity (PIE) that seeks to provide investors with long-term capital growth and income by directly investing in equities on a global basis, while at the same time adhering to a “Margin of Safety” investment philosophy.
A review of the Elevation Capital Value Fund’s portfolio will detail investments that typically exhibit one or all of the following characteristics:
- Low price in relation to net asset value or “intrinsic value”* (corporate net worth);
- Low debt levels**;
- A history of paying dividends and/or returning capital to shareholders; and,
- Have some form of economic moat e.g. brands, franchises or other.
The culmination of these factors results in the aforementioned “Margin of Safety” – the discount between the purchase price and our estimate of intrinsic value.
*Net Asset Value / Intrinsic Value – is also referred to as “Private Market Value”. Collectively we define them as the value an informed buyer would pay to purchase assets with similar characteristics. We measure Net Asset Value / Intrinsic Value or Private Market Value by scrutinising on and off balance sheet assets, liabilities and free cash flow. We also examine valuations and transactions in the public domain to formulate our view of possible future value.
**Low Debt Levels – can be assessed relative to tangible and/or intangible assets, free cash flow, the industry in which an entity operates, or versus peers within an industry.
As at 31 May 2018, the Elevation Capital Value Fund portfolio includes the following companies: