What is James Alexander & Co.?

James Alexander & Co. is an asset management firm. Its objective is to achieve strong long-term absolute returns for its stakeholders through part-ownership of Australian businesses.

What investment philosophy does James Alexander & Co. implement?

James Alexander & Co. employs a focused value-investing approach to making investment decisions. This is a bottom-up, research intensive process that involves the analysis of each prospective investment's historical financial reports; future prospects; senior management's consistency, efficacy and share ownership; competitive advantages, if any; and industry peers.

The fund does not try to outperform a specific market index, such as the S&P/ASX 200 or the All Ordinaries, on a quarter-to-quarter or year-to-year basis, but aims to provide long-term absolute returns by collecting businesses which are selling for less than their value; i.e. their price is lower than their estimated value by a required margin of safety.

Due to the inherently uncertain nature of investing, this approach provides the margin of safety required to lower downside risks. As described by some of the best minds in the investment industry, the fund believes the best chance to achieve strong long-term results is to buy good businesses at fair prices.

The portfolio manager has a deep understanding of corporate accounting in Australia, and heavily relies upon a business' historical and independently audited financial statements: the balance sheet; statement of financial performance; statement of cash flows; and the statement of changes in owners' equity. Comprehensive analysis is undertaken to ensure each investment's business model has proven sustainable over a period of time, and that management has identified rational opportunities for profitable revenue growth.

What does James Alexander & Co. invest in?

James Alexander & Co. predominantly invests in businesses listed on the Australian Securities Exchange. The fund employs a focused, fundamental analysis, approach to investment decision making and portfolio construction, and commonly holds between 3 and 15 businesses representing a cross-section of the Australian economy. The fund also purchases debt-based products, such as bank savings accounts, when capital cannot be employed into equities due to an adverse, i.e. overly exuberant, pricing environment.

It is important to note that, due to the fund's focused nature, the market value of its assets are likely to fluctuate frequently and materially over their investment horizon (see James' writing on Mr Market). Also, although not commonly leveraged, the fund may incur debt to increase its exposure to a particular opportunity which is deemed to be very attractive.

For further information on current and prior investments, please visit the 'investments' page of this website. Alternatively, please contact James Alexander & Co by emailing enquiries@jamesaco.com.