Note: This video is for educational and informational purposes only and does not constitute investment advice in any way.
Thank you to everyone who joined us for the Expert-in-Conversation session, High Conviction Investing with Andrew Hollingworth!
Andrew Hollingworth has over 30 years investment experience, 15 years of which were in top tier investment banks advising institutional investors on stock ideas. Andrew established Holland Advisors in 2008, setting up the fund in 2011 and converted it to UCITS in June 2021. Andrew is also the largest investor in the fund.
The Investment Approach
The fund looks for sustainable businesses that can grow their intrinsic value consistently over time while retaining strong defences against the threats that emerge from innovation and new competition. They call this an SCA or ‘Sustainable Competitive Advantage’. The main forces that determine the growth of a company’s intrinsic value are:
the speed by which it can grow its sales and profits
its return on existing capital and on the capital it reinvests in itself
how any excess cash flow is allocated by management
A company that is labelled ‘growth’ will often look good on the first of these measures, but a company they consider attractive will excel in all three. Furthermore, they build a margin of safety by only investing when such a company is trading at a discount. This can occur if its business model is misunderstood, or its owner manager out of favour (e.g. Meta in 2022 or Netflix in 2023). Their focus is on the long term compounding their investments can deliver as this will ultimately drive unit holder returns.
The running order is below. Enjoy!
00:00 | Intro
00:58 | Andrew’s Career Path
07:15 | Founding Holland Advisors
12:15 | An Evolving Philosophy
18:27 | Constellation Software
24:37 | Circle of Competence
29:48 | The Meta Investment
37:58 | Fund Concentration
43:00 | AI and CEOs
46:49 | *Nothing Beats a Jet2 Holiday
52:24 | Nu Holdings
1:00:18 | Portfolio Construction Outro
