The weakness in the global equity market has left a number of brand-name companies with commanding franchises trading at discounts, say Bill Kanko, president of Toronto-based Black Creek Investment Management Inc. and Richard Jenkins, managing director.
These two managers invest in such companies. Their well-honed strategy is to focus on those businesses that are market leaders and are increasing market share. Reinforcing this dominance, the companies should have sustainable competitive advantages in their industries, which should be characterized by high barriers to entry.
"Key to our assessment is the development of a proprietary viewpoint about the long-term prospects of the business, which we do by studying the company and the environment in which it operates," says Kanko. "At times, this involves taking a contrarian view to that of the market as a whole."
