Our Philosophy
Our objective is to provide to our clients a sense of partnership, absolute discretion and offer tailor-made solutions.
Ascertaining a reasonable idea of the value of a business is significantly easier and more reliable than trying to guess where its price might go in the short run. In essence, we need to understand what a business is worth and try to buy it for less than this value. In addition, we ask how much it would be worth to a strategic buyer and what kind of profitability they could make in a normal environment – always based on conservative assumptions. The only way to accomplish this is to review the company’s historical operating results. Additionally, it is also quite useful to evaluate how the market has historically valued that fundamental performance. It is important to acknowledge that investing involves taking risk. We ensure adequate compensation for these risks by being prudent and risk conscious – which we believe is paramount to our investment process.
Osiris focuses on well managed businesses that generate strong earnings and free cash flow growth at reasonable prices. Our research process is focused on assessing a company’s ability to sustain earnings growth over the long term through an understanding of its competitive advantages, business model and management expertise. Proprietary models and a benchmark-independent thinking form the basis of our investment decision process. We seek high-quality investments that might be periodically under pressure but can sustain growth characteristics – this holds true for both our fixed income as well equity investments. Our value approach is the same, no matter what the ultimate driver of intrinsic value might be.
“There are two requirements for success in Wall Street. One, you have to think correctly and, secondly, you have to think independently.”
– Benjamin Graham
Discipline and Intellectual Independence
We foster a culture that promotes discipline and high ethical standards. Research is the foundation for our success. We aim to have intellectual independence, which requires both time and patience. These factors contribute to achieving our aim to generate superior returns over the long term coupled with capital preservation.
Guiding Principles
Osiris manages multiple funds with different investment strategies. However, we have universal guiding principles that we apply for all our funds and our investment activities in general. First, we focus on buying companies at a significant discount between the price we are paying and our estimate of the intrinsic value of a business. Second, we think in terms of long-term ownership when we initiate any investment – not in terms of short-term or unsustainable developments in the market. Third, we aim to own companies that have stood the test of time and have strong durable competitive advantages.
“The hard part is discipline, patience and judgement. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgement to know when it is time to swing.”
– Seth Klarman
