The past few weeks have been very busy for the Cambridge team. After significantly increasing the size of our team over the past two years, we had outgrown our old office space. We have relocated to a new, larger open concept area which we are enjoying and it also allows us space for future growth. The open concept has the PMs working out on the floor with the analysts. This helps to encourage idea generation and facilitates communication amongst all of our Cambridge team members.
We have also been active on the international travel front as we hunt for attractive businesses around the world. Here are a few highlights from the past few weeks which demonstrate how we go about searching for and doing due diligence on prospective portfolio holdings:
- Ian traveled throughout Japan visiting 15 companies across the healthcare value chain, in addition to numerous store tours and conversations with industry experts. He came away with key insights into which businesses are best positioned to generate the greatest economic value through strong execution and intelligent capital allocation (the latter is often a big issue in Japan).
- Dan spent 10 days in China (Hong Kong and the mainland) meeting with a wide variety of businesses (banks and insurance companies, brokerage firms, REITs and trading companies). These meetings help us to better understand the structural drivers of the Chinese economy, which have important global implications (and will help us manage potential downside risks).
- I met Dan in the United Kingdom on his way home, where we spent three days meeting with 15 companies ranging from hospitality businesses and REITs to brokerage firms and insurance companies. The political uncertainty surrounding Brexit and the associated volatility has created opportunities in some very high-quality businesses.
- This week our due diligence continues with Greg and Derek in Germany, meeting with a number of large and smaller industrials companies.
These international visits are an integral part of our research process and we thank our business partners who invested considerable time setting them up.
While the world we live in remains littered with uncertainties, we remain steadfast and consistent in our process to find, analyze and own quality businesses that are attractive risk / reward opportunities. This requires patience and especially deep scrutiny when opportunities are scarce and markets are at all-time highs. We believe periods of volatility create opportunities for long term shareholders to benefit.
As always, we appreciate the continued support of our fund holders.
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