Abberton’s investment strategy is centered around the identification of:
- securities with a fundamental value gap,
- companies with a high probability of corporate change and
- situations where investor misunderstanding can arise.
Corporate change situations provide Abberton with a quantifiable value gap and a defined path to that value gap closing. The companies that we invest in are typically going through corporate change in one of three areas:
- industry structure (e.g. merger, regulatory change, take-out),
- company structure (e.g. management change, spin-outs, bolt-on acquisition) or
- financial structure (e.g. share buybacks, change in dividend policy, balance sheet restoration).
Abberton’s investment approach results in a portfolio of differentiated names comprising primarily mid-sized European companies with a corporate change angle.