The value of investing conservatively but unconventionally
The past year was a tumultuous one for investors. Now, with the seemingly entrenched economic challenges of mounting inflation and rising interest rates, many still harbour fears of a much speculated, long overdue stock market correction.
Menninger Capital Founder and Chief Executive Officer, Matthew Smith, says there is one category of investors that hold no concerns should a stock market downturn occur in 2023 – Value Investors.
“The future of the stock market is inherently uncertain, and it is difficult to predict with accuracy what will happen in the coming months and years,” explains Matthew.
“Value investors have a long-term investment horizon and tend to buy stocks when their share price has fallen, and make money as they increase in value over time.
“As opposed to growth investors, who pay attention to whether an industry or sector is growing or shrinking, value investors tend to focus on the intrinsic value of a stock and how it compares with its past performance and the industries surrounding it.”
One of the key points of difference that Menninger Capital offers clients is the opportunity to invest in Marathon Consolidated Ltd, which partners with carefully selected Public Unlisted Companies to drive exponential growth in revenue and earnings.
“Marathon’s objective is to partner with the companies in which we invest by providing long-term patient capital, and help them reach their growth potential through Menninger Capital’s corporate advisory capabilities,” says Matthew.
“We typically join the existing board and have an active level of engagement with the business and management. We have acted as a sounding board on matters from developing corporate strategies to major transactional events such as mergers and acquisitions, capital raisings and bank re-financing.
“As a result of identifying their intrinsic value, our partnership approach and corporate advice, we’ve seen many of Marathon’s investment companies grow significantly to create long lasting shareholder value. Through Marathon, we’ve been able to deliver superior investment returns for our clients, which has outperformed stock market investment results.”
Across the business, Menninger Capital demonstrates a value creation by identifying and executing on the dynamics of change.
“Change is the one constant in business and markets, and the catalyst and conduit for risk and return,” says Matthew.
“Our clients seek a trusted partner to get them from a current state to future state with a unique advantage and approach, and our purpose is to help others harness the financial and strategic value of change.
“We identify, study, understand, value, and create change for our clients with a long-term focus on the future, whether that be through offering investment management or corporate advisory services.”
Marathon Consolidated Ltd
Using their unconventional partnership approach, Menninger Capital has successfully identified the intrinsic value in companies and provided corporate advisory services to enable them to reach their growth potential and deliver superior investment returns for Menninger Capital clients.
Examples of their success stories include:
If you want more value from your investment portfolio, contact the Menninger Capital team today on 4728 8000 or email .
The information contained in this article is intended to be general in nature and is not personal financial product advice.
Main image: Matthew Smith (Founder and CEO) and Dan Ryder (Head of Distribution) at Menninger Capital.
Image credit: Rosana Kersh Photography
For more from Menninger Capital, read their January 2023 article – A Wealth of Value.
