NORBURY CAPITAL

Looking for inflection points

Norbury Capital manages a concentrated Europe-focused investment fund, focused on entrepreneurial small and midcap companies. We are stockpickers, continuously looking for companies with improving business fundamentals that are not yet fully recognized by the wider market. We have a framework in which we identify a mispricing of the shares of such companies. Our ambition is to generate attractive returns while minimizing risk. We do so for the long-term and work with partners who have a similar philosophy. 

The pillars of our investment philosophy

Solid flow of investment ideas

Continuously benchmarking your portfolio against new ideas helps in staying critical of your current investments. This improves the portfolio over time and diminishes the inertia often seen with long-term oriented investors

Long-term horizon

Our typical investment horizon when we invest is 3-5 years.

Accelerating phase of the profIt cycle

We prefer quality companies that are in an accelerating phase of their profit cycle

Attractive valuation and mispricing

We avoid overpaying on multiples, seek true mispricing, and try to understand why the opportunity exists and when it will resolve.

Focus on risk management

We use a disciplined algorithmic sizing approach based on company quality and the risk/reward of five scenarios. Portfolio-wise, we consider liquidity, sector, and factor exposure.

Concentrated portfolio

We invest in our top ideas, holding core stakes in only 10-15 companies

CHANGE

Ever since we started in Equities over a decade ago, the changing landscape was imminent. Attention for smaller companies from investors and analysts has been on a strong decline. The rise of passive investing (index tracking) has outgrown active investing (fundamental analysis). This is especially pronounced in the smaller corners of the market. Companies that used to have more than 30 active institutional large shareholders and had a coverage of more than 15 experienced analysts are now barely covered. As a consequence, this is a pond where access (scheduling C-level meetings is very easy) and information are abundant, whereas competition is more  limited.

VISION

Norbury Capital was created with the idea to exploit opportunities in these pockets of the markets where a lot of capital has left. Norbury Capital aims to combine the best of both worlds. A relatively concentrated, long-term horizon coupled with an assertive focus on near-term stock dynamics. This is a strategy that fits our personalities well and sets Norbury apart from the crowd, enabling us to uncover and capitalize on undervalued opportunities in European small and mid-cap equities.

STRATEGY

The Norbury Capital Difference:

  • Long-only strategy with a Hedge Fund mindset

  • Combining solid business knowledge with strong stock knowledge

  • Concentration at the core, flexible in thinking

  • Strong network building around both the business and the stock

  • Rigid portfolio and risk management