Fundamental Research
Focus on companies with simple business models – primary research to gain a variant perspective
Investment Philosophy
Engine follows a strict discipline of investing in companies that are prone to mispricing while focusing on limiting permanent losses of capital
Value Investing
Strict focus on valuation (purchase price matters) and the likely steps to close the value gap
Concentration & Long-term Orientation
Focus on best ideas – private equity style investing in the public market
Activism as a Tool
View activism as a tool to highlight or create shareholder value
Risk Management
Deep fundamental research, position sizing, industry diversification and utlization of focused hedges to offset individual risks uncovered during the investment process
Alignment with Investors
Senior professionals of Engine have a substantial portion of their liquid net worth in the fund and have their compensation aligned with fund performance
LIMITING PERMANENT CAPITAL LOSS BY
Prioritizing Stable Businesses with:
Strong Free Cash Flow Generation
Good Balance Sheets
Undemanding Valuations