Cookie Policy

We have placed cookies on your device for this site to work correctly and to help improve the user experience. If you click on 'OK' we will continue to store cookies on your device enabling you to benefit from the site's full functionality. You can change your cookie settings at any time using your browser. For more information on this and our cookie policy please refer to the cookie section in our Legal Statement.

 

Our Investment Process

  • 1
    Quantitative Research »
  • 2
    Equity Research »
  • 3
    Recommendations »

Quantitative Research

Our analysts typically begin their search for investment ideas by using a variety of qualitative and quantitative tools to identify stocks that are potentially trading well below intrinsic value. We view quantitative analysis as an enabling technology that harnesses our investment philosophy in a systematic and scalable way. Such tools include our internally-developed models and flexible screening tools that each analyst can tailor to their specific needs.

Quantitative Research

Quantitative Research

Equity Research

Once the decision has been made to pursue an investment idea, the research process will typically proceed in three phases. As a rule of thumb, analysts should expect to reject at least half of their ideas at each phase.

When Phase Three research is completed, a decision will then be made as to whether or not the idea should be considered for purchase in the Orbis Funds. If so, a Policy Group Meeting (PGM) will be convened. This is not a decision-making body but rather a forum for rigorous peer review. As such, the aim of the PGM is to raise the probability as high as reasonably possible that our analysts ultimately make the right investment decisions.

Equity Research

Equity Research

Recommendations

Each of our analysts communicates their recommendations through the use of a paper portfolio which simulates investment decisions in the actual stock market. This is a list of stock recommendations that have been weighted to reflect the analyst’s degree of conviction in each idea.

Our analysts’ paper portfolios enable them to express unequivocally their best investment ideas. The performance of each analyst’s paper portfolio, relative to a relevant benchmark, provides the most significant input to their remuneration, meaning that they are assessed on the basis of their own decisions, not those of others. As a result, paper portfolios reinforce the principle of individual accountability.

In the early years of an analyst’s career, their paper portfolio is a valuable learning tool that has a limited impact on clients’ portfolios. Analysts who demonstrate superior stockpicking ability are given additional responsibility, and it is the recommendations of these “selected analysts” that serve as the raw materials for the portfolio construction process.

Recommendations

Recommendations


 Notice - this site is optimised for desktop use.

Thank you for visiting the Orbis website. Please note that some functionality on tablets and smartphones may be limited as the site was developed for desktop use.