Craven House Capital's strategy was created by Desmond Holdings Ltd of Hong Kong, which acts as its investment manager, to take significant stakes in operating companies in emerging and frontier markets.
Our strategy is to acquire meaningful positions in companies where we believe the existing management has the local knowledge and business acumen to grow and thrive in their market. Craven House Capital will also consider the acquisition of entire companies as operating subsidiaries.
Central to our strategy is the ability to use our shares as currency in acquisitions. By providing a public market valuation to existing enterprises, we can bring international debt and equity financing to a market that is otherwise expensive and illiquid. Craven House Capital can be a value added investor, at the same time providing a seller with liquidity that is hard to find in thinly traded or illiquid markets.
Net Asset Value
Craven House Capital judges its success on one simple metric: Net Asset Value of our holdings. As the old adage wisely states, ¨In the short term the stock market is a voting machine. In the long term it is a weighing machine.¨ We aim to take advantage of this phenomenon. Because we have captive capital we can be patient.