Philosophy

WaveStone believes that markets are not perfectly efficient, leading to securities becoming mispriced.  As a result we utilise a bottom up stock picing process to add value over the medium term.

The WaveStone investment philosophy is to:

  • Identify businesses  which exhibit  Sustainable Competitive Advantage (SCA) -  this is the  interaction  of  a company’s  Corporate  DNA  and  the  underlying industry dynamics in which a company operates which are expected to deliver above market earnings growth over the medium to long term;
  • Exploits  inefficiencies  whereby  the  market  mis-prices  the  underlying  medium  to long  term earnings potential.

WaveStone believes that a company with the strongest corporate DNA that operates in the most favourable industry and economic conditions should have the most robust Sustainable Competitive Advantage.