A value-driven investment partnership · Cape Town
“Our mission at Baobab is a simple one, to produce the right long-term returns for the right group of people. If we achieve these two objectives, we will have a successful and authentic Investment Partnership.”
Sandy Le Roux, Annual Partners Report 2018
We are an authentic owner-managed investment management business. Our passion for investing was rooted in Africa, but has grown to span the globe as we seek opportunity in companies that meet our investment criteria.
We view our business as a partnership and seek aligned relationships with a select group of clients who understand our investment approach and, very importantly, have the same multi-year investment time horizon. Our small size and patient approach gives us an advantage over most traditional asset managers. We strive for simplicity and consistency in all that we do and treat our clients’ money as if it were our own, co-investing in our best investment ideas in an effort to meet our aligned long-term goals.
“Simplicity is the ultimate sophistication.” Leonardo da Vinci
We are patient, long-term investors and aim to grow client capital at an above-average rate, but without taking on excessive risk. Modern investors are increasingly index-driven and short-term focused, creating a niche opportunity for patient, value-driven investors such as ourselves. We do things differently to most investment managers, not because we seek to be different, but because we think it will help generate superior returns.
Key attributes of our investment approach include:
In simple terms, we seek long-term ownership stakes in good businesses, with good management, that are available at a good price.
The best way to understand our investment approach is to read our investment insights.
We view Baobab Investment Management as a Partnership where we co-invest alongside a group of like-minded long-term investors. These are some of the principles that guide us and should serve as a useful guide for prospective Client Partners.
We believe equity ownership is the best way to preserve and build long-term wealth. As a result, most of our time is spent seeking attractively priced equities.
We think and invest like long term business owners, because we are. Our focus is on the next 5 years, not the next quarter or year and we seek ownership stakes in businesses that we would like to own for 5-7 years or more.
We are investors not speculators. We buy shares in undervalued businesses that we understand. We do not trade and we are not drawn to the exciting stories of the time.
From time to time we will take investment stakes in businesses of average quality that we expect to own for less than 5 years. We will only do this when the level of mispricing is extreme, and when the business has sound management and a reasonable balance sheet.
We favour quality, but only at the right price.
We have a strong preference for owner-managed businesses where management have a significant equity stake and are aligned, long-term thinkers.
We like to partner with the right people.
We seek humility and integrity in all of our partners, especially the management teams we invest in. Cultural alignment is as important as financial alignment.
We believe in simplicity. Investing is hard, but it shouldn’t be complicated. If a potential investment needs a complex excel model, it is probably not cheap enough.
We are patient investors and seek to buy on our own terms. We are comfortable holding cash when the market is not offering sufficient opportunity.
We will be transparent in our communication, in good times and bad.
Our commitment to our clients should ultimately differentiate us.
We cannot guarantee success every quarter or year, but we can promise to treat our clients’ money as if it were our own. We co-invest with our clients in our best investment ideas in an effort to meet our aligned long-term goals. We will make mistakes, but will always remain transparent and honest in our communication around the decisions that we make.
We view our clients as partners with whom we co-invest in our best investment ideas.
We also seek to partner with a select group of like-minded advisers who also have a long-term investment time horizon, something that is a prerequisite for investing in listed equities.
Investment Manager · B Com
Sandy has been in the financial services industry for thirty years, with twenty six years of fund management experience. Prior to Baobab Investment Management (Baobab) Sandy was a director of the successful Personal Trust business for twelve years and a member of the executive committee for five years. Sandy then joined Counterpoint Asset Management and set up the Counterpoint Private Capital division which evolved into Baobab. Sandy has extensive experience in managing asset allocation and equity funds both domestically and internationally. During this time investing has grown to become much more than a job, but a passion which Sandy lives every day through Baobab. His strong belief in the merits of a sensible investment approach built on sound value investing principles is what led to the formation of Baobab, to provide a fundamental value driven investment management service in an industry that is becoming increasingly index-driven and short-term focused.
In his spare time Sandy enjoys playing golf and padel and spending time with family and friends. He loves running in the mountains and this is often where he will escape to when he needs to get away from the noise of markets and think clearly about the investment landscape.
Operations and Business Administration · B Bus Sc
As a young graduate Kathryn spent time working in offshore investment administration and marketing before taking a break from her career in the investment industry when they had a young family. After a few years of enjoying entrepreneurial and community focused child-related interests, she returned to work on a part time basis, assisting with investment research and administration. When the Baobab seeds were sown she was the natural person to take on this role.
Taking advantage of our size and flexibility, we offer differentiated equity exposure via our Flexible unit trust that reflects our best local and global investment ideas.
In September 2023 we launched an Actively Managed Certificate, a unique vehicle that combines the best investment ideas of two focused boutique managers.
A flexible portfolio investing across asset classes, selected bottom-up on each instrument’s own risk and reward.
A locally listed structured equity note holding a focused but differentiated portfolio of shares, combining the best ideas of two value-conscious boutique managers.