As a Fund Manager with many small cap holdings, liquidity is never far from our minds. We are focused on ensuring we preserve and grow the capital investors have entrusted to us and an acquisition is both a liquidity event and a potential value creation event.

So how do we pin point a take-out candidate from the wide field of publicly traded entrepreneurial prospects? “The truth is we rarely buy expecting a take-out”, says David Barr, President and Portfolio Manager. “However it’s a by-product of our process, our private equity approach to public markets.”

More than stock picking, we fundamentally analyse every aspect of a potential holding, which includes the customer base, the competition, the industry as a whole and more.

Our experience has revealed some of things that we believe correlate to identifying potential take-out candidates. Read more…