Sustainable Value Creation
Our convictionA 25-year successful track record as engaged shareholders has taught us that to create value over time, you must commit to companies for the long run. By engaging in an on-going dialogue with a company on a strategic level, we help unlock its intrinsic value and reduce risk.
We’re also convinced that a well-integrated and executed ESG (Environmental, Social & Governance) strategy helps drive a company’s long-term value to the benefit of all its stakeholders.
“Turning long-term focus into sustainable value”
Finding the long-term compounders
To benefit from long-term compounding it’s vital to select the right companies in the right industries. We do this by developing in-depth knowledge of a select group of companies with strong strategic positions, while drawing on the wide array of expertise available within Kempen.
When selecting companies we look at quality first, valuation second. We incorporate ESG criteria into our company analysis as part of assessing the quality. Also, we use our experience and sector knowledge to see beyond the short-term earnings, and arbitrage between the market price and the intrinsic value we see in a company.
At the heart of sustainable growth lie competitive advantages. We therefore seek companies with an attractive strategic position based on pricing power and robust profits, feeding investment and innovation to deliver market leadership, valuable intangible assets and structural growth. Strong management is important and we support companies in executing their long-term strategy.
In the long run, it is intrinsic value that drives share prices. To create intrinsic value you need time, alignment with society and a long-term strategy. Having long-term shareholders allows a company to focus on building sustainable value. Moreover, patient investors benefit from this value creation and can benefit from significant discrepancies between the market price and the intrinsic value we see in a company.