Our first port of call is management. JUB conducts on average 200 to 250 visits a year to companies (both new and repeat visits). We feel we have seen most of the different types of management individuals and teams that operate in the various industries we are drawn to and over time have built considerable experience enabling us to select the winners and more importantly the experience to “avoid” others. We recognise that history is littered with more unsuccessful projects as successful, but this is the type of backdrop within which picking the winners generates the high returns we seek.
Secondly, we analyse the feasibility of the proposed or existing project. JUB has considerable geotechnical experience and conducts numerous on-site visits all over the world. This is especially important given that first-hand knowledge of how to access a site is as important as what is there. A company’s feasibility assessment of a project often differs from JUB’s estimates for many reasons the most common being financial as costs are usually underestimated.
Finally, we look at valuation and through a range of techniques assess where the markets valuation is relative to our own. Value with a catalyst to us equals undiscounted change, change being one of the most powerful drivers of company valuations. The potential for undiscounted change is what we are hunting.
Outside the investment process we also acknowledge the importance of accessing deal flow across the sector. The considerable network of corporate brokers JUB has built up over the years is a key part of implementing the investment process.
We take a pragmatic macro based directional view on all the underlying commodities analysing the portfolio along underlying commodity exposure. Although we like to run a focused portfolio (10 to 12 core positions) where positon size becomes too high we cut regardless of future prospects.
When we can’t find the opportunities or our macro based directional view is unfavourable we can hedge but in reality, we know our safest hedge is to hold cash – we are not afraid to hold 100% cash if needs be.
Jub offer a discretionary managed account service to professional investors. These are custodied with Jarvis Investment Management.
For more information please contact Alina Bizgan.
Jub also offer both ISA trading accounts and SIPPs for professional investors.
Please contact Alina Bizgan for more information.
The Baale Mane is a girl’s home on the outskirts of Bangalore, India, for those who have been subject to domestic abuse or for those whose families are simply too poor to provide a childhood which every human should be entitled to.
Since his visit to The Baale in 2011, Adam has been an active supporter of the charity, raising money for its expansion and improvement of facilities. Since founding JUB Capital, the company now gives a percentage of its annual profits to continue to support the charity.
You can help support Baale Mane here.