Investment Approach
We invest capital in a focused, concentrated and long-term equity investment strategy with a ‘one firm, one fund’ philosophy. At RH Capital, we believe long-term business success is achieved through operating where you have a competitive advantage. In the business of investing, our competitive advantage is obtained through a disciplined, strategic approach and a willingness to make investment decisions against broader consensus opinions. We test and verify our thesis against company and industry data points not short-term share price movements.
Our investment approach is influenced by our four core principles of focus, resilience, authenticity and alignment.
Long-term
We view ourselves as partners to Boards, management teams, founders and other long-term strategic holders.
High conviction
We do the work and back our conviction with a concentrated portfolio.
Quality, value & growth
This means that we try to avoid value traps but also don’t necessarily follow the herd in over-valued ‘hot’ companies or sectors.
Qualitative bias
We place as much emphasis on the qualitative as we do the quantitative. We spend a considerable amount of time seeking out unique insights from industry contacts such as competitors, suppliers, customers and regulators.
Strategic approach
We typically invest as cornerstone shareholders (in smaller or mid-sized companies) with some influence or alongside other owners with significant skin in the game.
Not afraid to be different
We are focused on finding opportunities that are likely to become popular in the future but may not be popular today.
Simplicity over complexity
We prefer business models that are easy to understand, have obvious enduring competitive advantages and large market opportunities.