Our mission, therefore, is to support families and entrepreneurs in developing their businesses, through the provision of patient capital, expertise and advice, coupled with a long-term horizon that few other investors can match.
Evolve Capital Holdings Fund was founded in 2009 under the name of evolve and was transformed into an investment fund in 2017 with the following characteristics:
A concentrated equity portfolio that is actively managed;
- Consisting of shares in listed investment companies which the administrator knows well;-
- With a geographic focus on Europe, Asia and the United States-emphasis on risk management,
- Balance between capital growth and capital conservation.
Evolve Capital Holdings fund mainly invests in shares of listed investment companies. Many of the smaller enterprises are less well-known and receive little attention from analysts, since income from trade in these companies generates little to no revenue. Less attention means that the stock market of these companies is less efficient and therefore offers more opportunities for sound research. The approach the administrator uses is best described as ‘ picking ‘.
What are the properties of such investments?
Transparency – investment companies invest through an equity interest in the companies in their portfolio. Risks of these interests are transparent in nature and the (significant) interests are reflected in the annual reports.
Liquidity – Large listed investment companies are freely tradable and liquid. Often, industrial families have a significant interest in these societies, which can reduce marketability.
Dispersion – Usually, investment companies limit themselves to equity investments in companies from a limited number of sectors or industries. In this way, the investments also serve as strategic importance. These can be both listed and non-listed companies and real estate. Although these companies are subject to the rules of the supervisory authorities of the financial markets, Z e are not subject to the diversification rules that apply to equity funds. The advantage of this less dispersion is to focus more on a number of selected sectors, themes and regions.
Investment Horizon – investments of investment companies are normally long-term investments.
Regional Focus – the companies in the investment portfolio of investment companies often focus in a particular geographic region.
Discount – Often the listed investment companies have a discount compared to the actual intrinsic value. Several reasons can be used for this. Firstly, the Concentratierisicoen mentioned in addition, the sometimes inadequate merchantability of the pieces. This so-called “holding-discount” also benefits. After all, you can invest less in the underlying values and it provides protection for financial market volatility.
Involved – often listed investment companies have a seat in the Board of Commissioners of the large shareholdings they own. In this way they can exert influence on the policy. This
The administrator has strict investment and liquidity criteria. Based on these criteria, the list of all listed companies is a short-list. This is the investment universe of the Evolve Capital Holdings Fund and currently comprises about 25 companies. From the companies in this investment universe, the administrator closely monitors recent developments including brokers ‘ research reports, interviews with companies and competitors, press releases and financial reports. There is a great deal of emphasis on the contact with the companies from the investment universe. With these companies, the administrator has a regular dialogue; Through company visits and attending presentations.
The administrator is looking at both qualitative and quantitative aspects. The qualitative aspects are extended to the company’s strategy and the quality of management. On the quantitative side, ‘ discounted cash flow ‘ is central to the valuation of an enterprise. The portfolio is made up of companies from the investment universe. The portfolio includes approximately 15 best ideas.. In addition, the fund can use derivatives to reduce risks further.
Balance of capital growth
In all this, the administrator puts a lot of emphasis on risk management.
Do you have questions or comments?
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