Oc Funds Management

Investment Philosophy

Deriving value from ‘value’ investing

Ralton’s investment philosophy is underpinned by the team’s belief that although capital markets are reasonably efficient, the intrinsic or true value of many underlying businesses is not always reflected in the market price of its securities.

Ralton believes applying a thematic-value approach to its investment process gives the team the best opportunity to capture and take advantage of stock mispricing through market cycles.

“Our view is that while capital markets are fairly efficient, a company’s true value is not always reflected in its share price. Through our proprietary and disciplined investment process, we believe we can consistently identify and exploit this mispricing for the long-term benefit of investors.” Andrew Stanley, Head of Australian Equities


Investment Process

Combining top-down and bottom-up research

Intensive bottom-up research is the cornerstone of Ralton’s investment process, which it supplements with top-down thematic views.

Disciplined and consistently applied, Ralton uses a number of proprietary qualitative and quantitative techniques to scrutinise companies so as to uncover undervalued businesses.

Ralton aims to invest in companies with: 

  • strong and reliable management
  • good profit and dividend growth expectations
  • reasonably predictable future profits and cash flows, and
  • clear business models.