The Manivest investment criteria have been developed and refined since 2013. We use our own software to scan global markets for companies where all Manivest investment criteria are met, and where the company is trading at a discount compared to internal value or because of extraordinary external events.
Our Manivest software rates the shortlisted companies giving them a score for Value fundamentals and Growth potential. From here we start our evaluation including in-depth financial and technical analysis to decide if and when to invest in a given company. The trading is hereafter to 90% automated, and a Machine Learning process optimises the trading pattern and algorithm in real time.
THE MANIVEST INVESTMENT CRITERIA – ALL COMPANIES MUST HAVE:
- Market value above 250 mil. US$
– We believe that a company needs a certain level of capitalization before we can invest. This is also to ensure enough liquidity, so that we can invest and exit an investment without influencing the price significantly
- Price Earning (P/E) must be below 18 when buying and not above 25 when selling
– The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. We always seek to enter companies around a P/E of 10 – which equals to a return of 10% on our investment.
- Minimum 10% average growth in sales or profit over the last 3 years OR above 3% dividends
– We search for companies that are growing, or that continues to maximize profits and returns for shareholders.
- Above 8% EBIT margin
– EBIT indicates the % level of profit from the companies revenues. Our strategy searches for mature companies, that make strong profits, hence we do NOT invest in any company that does not make a solid profit.
- Net Debt/EBITDA below 8
– The debt of our companies must not be higher than 8 times the yearly profit. We always make sure, that the companies in our portfolio are strong enough to pay their debts.
- Return On Equity (ROE) above 10%
– Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested – this has to be 10% for us to consider investing in the company. We believe that management of the company is not effective enough, if this ratio is below 10.
- More than 5 years history and publicly listed more than 2 years
– We do not invest in start-ups. We want our companies to be mature, and for the market to have adjusted prices before we seek to invest. This also means we do not invest in companies that are not publicly traded or IPOs.
- The “Manivest Event/Price Algorithm”
– This is the “secret” of our success. The Manivest Machine Learning Algorithm analyses more than 100 financial parameters for each asset in real time, and utilises Machine Learning to predict the best possible timing for buying and selling the asset.
Our detailed investment strategy is described in our Private Placement Memorandum