Opportunity can arise when companies cut dividends
We are heavily focused on capital preservation and concentrate largely on the underperforming companies and sectors, along with smaller companies that are under the radar of large institutional funds. In fact, over the past few years we have found some fantastic investments in companies after they cut their dividend. Investors who previously owned the stock for its income often sell out completely, depressing the share price to a point where we see an attractive investment opportunity over the medium term. Once business performance improves, dividends are reinstated, meaning these companies deliver both capital gains and income over time.