Legatum Capital is the core of Legatum’s business. We have a 25 year heritage of investing in the global capital markets, with much of our history focused on emerging and frontier markets. We are value investors and tend to invest in the public equity markets on a long only, unlevered basis.

What makes Legatum unique is that we manage only proprietary capital, which makes it possible to invest on the basis of our convictions and take a long-term perspective, free from short term volatility, benchmarks or redemptions.

Legatum's investment philosophy is founded on seven core principles.

A Long-Term Perspective

We focus on the long-term commitments required to maximise the absolute return on investment, without the artificial constraints of short-term performance. Adopting a long-term perspective allows us to be patient and disciplined in our investment approach and to absorb the short-term volatility inherent in investment markets.

Optimal Allocation of Capital

The productive allocation of capital creates wealth, provides a foundation for the growth of prosperity and stimulates the development of markets. Rigorous research, execution and a prudent tolerance for assessed risk are the hallmarks of effective and efficient capital allocation.

Taking Advantage of Transition

When companies and countries are in transition, heightened uncertainty results in a scarcity of capital. Our experience shows that providing capital during such periods of increased risk can generate asymmetric returns in the long term.

Simple Big Ideas

Opportunities are frequently driven by macro themes that shape the world. Often, a simple catalyst or value driver that is easily understood by the layperson will indicate the direction for a particular investment.

Investment, not Speculation

We invest in great businesses with long-term potential, and we do not speculate in financial trends or fads.

Concentration, not Diversification

We invest both narrowly and deeply, concentrating upon our best ideas. Having permanent capital and taking a long-term approach allows us to withstand greater volatility more than most other institutions.

Leverage is Incompatible with Volatility and Concentration

The effect of inherent price volatility within a transitioning market is amplified when an investor is indebted; therefore our fund is entirely unleveraged.

Financial Inclusion in Emerging Markets

Finance is the heartbeat of any thriving economy and if today’s emerging stars are to become tomorrow’s giants, then their financial service industries are to grow exponentially in the years to come.

Heightened availability of finance plays its part is business development, rising wealth levels and improved lifestyles for the millions of previously unbanked. Over the last decade Legatum has invested in, and continues to invest in, financial services groups across a broad range of emerging markets.

Mizuho – An Industry Leader

Mizuho’s transformation best exemplifies the turnaround of the Japanese banking sector. In early 2003, the viability of Mizuho was in doubt: a deeply discounted preference share issue was sold to bank customers to maintain its capital adequacy requirements.

The concentrated investment of more than US$ 3 billion, while the economy was still considered to be stagnating, triggered a re-evaluation of the sector. Mizuho emerged as one of the world’s most valuable financial institutions, with a market value exceeding US$ 100 billion in 2006, over ten times higher than three years earlier.

SK Corp – A Long Road to Transparency

Investment in SK Corp shepherded a company in transition from management misconduct to one where international standards of corporate governance began to emerge. Following the criminal conviction of executives for a massive accounting fraud, the South Korean refiner declared its commitment to change. While the highest standards of full compliance are an ongoing journey, several steps were taken in the right direction.

Coupled with a very positive energy market and the fact that shares were selling at one times cash flow, a 15% stake increased approximately six-fold over nearly two years from 2003 to 2005.