Navis Asia Navigator Fund – Value Oriented
Navis' original public equity fund, Navigator, was launched with a philosophy of "a private equity approach to investing in public equity", building on Navis' firm wide beliefs. The investment approach is based on extensive bottom-up fundamental research on sectors, companies and their competitive environment, management depth and trustworthiness. Navigator has a value orientation – it seeks companies whose earnings, growth or dividend characteristics are not fully valued by the market and often not widely covered by analysts. The Navigator portfolio is therefore conservative, with beta well below 1X.
Navigator's research process is intensive and hands-on. The Fund only invests in businesses where the investment team has met and is comfortable with the management. We leverage the substantial and broad investment experience of the Navis team and Investment Committee deliberation is structured to be comprehensive, frequent and iterative.
The portfolio is not bench-marked against any single index because no single index covers Navigator's geography; but our internal benchmark is a mix of Southeast Asia, Hong Kong and India. The Fund targets roughly 15 investment positions (including cash) at any one time. Country weightings vary but we seek country, industry and currency diversification at all times.
Investment criteria include assessments such as:
- Is the industry analyzable by us?
- Are industry fundamentals attractive?
- Is the business attractively priced at current valuations?
- Is liquidity acceptable?
- Are the levers of value creation in the hands of management?
- Is the company a leader or near leader in its markets?
- Does it have a sustainable competitive advantage?
- Are the managers/owners competent and trustworthy?
- Is the capital structure appropriate for the business?
- What are the internally and externally-driven risks as assessed by Navigator?
- Are these acceptable? Can they be mitigated?
Since inception the Navigator Fund has increased by 218%, outperforming the MSCI ex-Japan index which increased by 65% over the same period (as of 31 December 2016).
Fund Structure and Terms
The Fund has a Cayman Islands domiciled, Master/Feeder structure with separate feeder funds for US and non-US Investors. There is a Manager's incentive fee subject to high water mark and a minimum performance trigger. The fund is open ended with monthly net asset valuations and subscriptions. Redemptions are quarterly and subject to 60 days' notice, with some prudential limitations. There are no entry or exit fees.