Slater Recovery Fund

The Slater Recovery Fund invests in companies that have a low price-to-earnings ratio (PE) in relation to their earnings growth, strong cash flow and a strong financial position. These companies form the core of the Fund. In addition, we also use a number of secondary recovery investment to supplement this by scanning our universe for discount to net assets, companies trading at a discount to cash and recovery situations.

We focus on companies with strong balance sheets, powerful competitive positions and moats, high returns on capital and rising margins and sales per share. We interrogate company accounts and analysts’ forecasts vigorously. We also place a great deal of emphasis on positive recent trading statements and directors’ share dealings. If we are still interested in a company at this stage, we meet with senior company management to get a greater understanding of the visibility of earnings and margins. We also focus on understanding both the opportunities and risks facing the business in the future. If, and only if, we think all boxes have been ticked will we invest in a company.