"Legatum builds its success by investing in easily understood businesses that possess durable competitive advantages and a consistent earnings history."
"We are entrepreneurial - we think about owning a share of a business, not owning stocks."
"We concentrate our investments in our best ideas, free from the constraints of diversification, redemption risk or the need to report short-term performance."
Legatum is an entrepreneurial, value-oriented portfolio investor. We believe in investment concentration, investing with a long-term perspective in themes, often contrarian, for which we develop a detailed understanding and a strong conviction. We maximise the universe of opportunities by adopting a world view. We invest in large economies which play a significant role in the global marketplace. Within these economies we seek world-scale companies which have strong leadership positions in their industries.
Legatum builds its success by investing in easily understood businesses that possess durable competitive advantages and a consistent earnings history. We are entrepreneurial - we think about our business as owning a share of a business, not owning stocks. While price is important in the investment decision, business quality is even more so.
Our independence gives us the freedom to invest on the basis of our beliefs and to adopt investment strategies that maximise absolute performance over the long term. We look at long-term themes and identify opportunities consistent with the 'big picture'. We are disciplined and patient in waiting for opportunities within our circle of competence and value range. Once invested, we can wait for the investment theme to unfold, which can sometimes take years.
Legatum usually holds a concentrated portfolio of investments for which we develop a detailed understanding. We concentrate our investments in our best ideas, free from the constraints of diversification, redemption risk or the need to report short-term performance.
We believe opportunities are greatest where difficult, non-standard problems need to be solved. These often arise during periods of transition in a company, an industry or a country. Examples from our history include Hong Kong's transition to Chinese control, Brazil's battle with hyper-inflation, Russia's transition from communism to capitalism and Japan's struggle with persistent deflation.
Legatum believes that our success is inseparable from the prosperity of the capital markets in which we operate. In our investments, we take seriously our responsibility as an investor to build strong corporate governance capacity within the companies in which we invest. Our logic is straightforward: we believe that companies with interested shareholders are more likely to achieve superior long-term financial performance than those without.
Legatum seeks to celebrate competent and ethical management, communicate the principles of good corporate governance and confront injustice where management actions are egregious enough to harm shareholders' economic interests. Examples from our history where we have put these principles into practice include Gazprom and Novolipetsk Steel in Russia, and SK Corp in South Korea.
