Legatum manages only proprietary capital, allowing us independence and the freedom to manage our fund according to seven 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 investment approach allows us to withstand greater volatility 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.