Slater Recovery Fund

The core of the Slater Recovery Fund are companies that have low price-to-earnings ratios (PE) in relation to their earnings growth and strong cash flows and financial positions. We also use a secondary recovery investment screen, looking for companies at a discount to net asset value, companies trading at a discount to cash, and turnaround situations. We focus on companies with strong balance sheets, powerful competitive positions and high returns on capital. Our investment committee examine company accounts and analysts’ forecasts. We also look for positive recent trading statements and strong director buying. If we are still interested in a company following this thorough in-house research we meet senior company management. We form an opinion on them, the opportunities and risks facing the business and the visibility of earnings and margins. If all criteria has been met we will invest in a company.