PCM’s investment philosophy is based on a long-only, bottom-up, fundamental-value, active investment approach. We seek to benefit from the significant value generated from the ongoing modernisation, restructuring and consolidation processes in our investee companies. We also actively work to improve corporate governance and mitigate corporate governance risks. In general, PCM’s investment philosophy can be described as a bottom-up search for companies that are adding value through internal modernisation and consolidation.
PCM firmly believes that the successful transformation of companies from Soviet-era “production units” to more modern, “Western-style” corporations generates tremendous productivity growth – which in turn is a key driver of economic growth and shareholder returns over the long-term. In addition, PCM places an emphasis on the quality of corporate management and seeks to invest in companies that already benefit from superior management or where management or ownership change has the potential to generate significant shareholder value.
PCM’s investment decisions are underpinned by highly-detailed, proprietary investment analysis conducted by the experienced fund advisors and sector-specialist analysts that form the PCM investment team.
Our analysis is generally based on a three to five year investment horizon. This in-house research covers a broad spectrum of the region’s investment opportunities. Furthermore, having operated in the Russian and Former Soviet Union markets since their effective inception, PCM has built up an expansive corporate contact network, which enables us to identify qualitative changes within our companies.
PCM seeks to construct concentrated portfolios and actively manage those positions as a constructive shareholder of the businesses. As such, PCM is in frequent contact with the investee company’s management teams and core shareholders. We strive to add value to our investments by engaging management and other stakeholders.
PCM does not seek to engage in any market-timing activity. Instead, PCM has established an institutional, sophisticated and stable client base that understands the considerable market opportunity, the risks associated with the investment and take a similar long-term, fundamental-value driven investment approach to PCM and the advised Funds. PCM actively seeks to inform and educate its client base with our on-the-ground knowledge.