Corvara believes that consistently applying long-term sustainable growth and quality investment criteria, using a disciplined investment process, and building focused portfolios can provide long term excess return above relevant benchmarks.
Corvara’s investment strategy rests on these core beliefs:
Corvara believes that high quality companies outperform in down markets and outperform the broad market over time. The highest quality companies have high returns on capital, attractive business models supported by high barriers to entry, and sustainable competitive advantages.
Corvara focuses on opportunities with long term sustainable growth themes that can meaningfully outgrow global GDP growth. Quality companies with sustainable earnings growth outperform over time.
Corvara focuses on thematic, high conviction ideas and thus limits its portfolio holdings to 15 to 25 global companies. Thematic investing is benchmark agnostic and uncorrelated and hence, differentiated. High active share managers have outperformed diversified managers over the last 15 years.
Companies that meet our secular growth and investment criteria go through our fundamental research process. The research process consists of initial findings, thesis development including determining upside potential, and more extensive fundamental research. If a stock meets our criteria, its fundamentals are strong, and the valuation represents significant upside potential, Corvara may include the investment in its portfolio.