Investment Process

The first step in our investment process is the generation of ideas. Ideas come from a wide range of sources - analysis of a competitor, customer or supplier, a casual BBQ conversation, application of financial screens.

Lighthouse Investment Services will initially identify a universe of investible securities through the application of financial ratio analysis. This analysis will address issues such as asset backing, debt levels, return on equity and free cash flow.

Lighthouse Investment Services will then conduct a detailed analysis of potential investments with a focus on understanding how that business generates value for its shareholders. This will vary from business to business. Some investments might generate substantial cash flow with little requirement for additional capital. Others may hold net assets substantially in excess of their market capitalisation. The common purpose is to identify securities that are valued by the market below their identifiable value.