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In depth, fundamental and rigorous analysis

Nartex implements the best practices of the leading global Private Equity and Hedge Fund institutions to analyse its companies and construct the portfolio.

Sources of information

  • Tradicional

    Presentations, quarterly and annual accounts of the company and its competitors, discussions with management team and sell-sides

  • Specialised

    We use industry experts and consultants, specialised publications, discussions with private investors and venture capital (public information only).

  • Alternative information

    Purchase specialised market data, run market surveys, investigate social media trends, company culture and detailed accounting analysis.

Key pillars of Nartex’s analysis

Nartex seeks to analyse all its companies as long term owners.

Qualitative and quantitative approach based on fundamentals, key areas of focus include:

Qualitative analysis

  • Barriers to entry
  • Competitive advantages
  • Consumer benefits
  • Industry structure
  • Structural trends
  • Sources of growth
  • Quality of management team
  • Culture
  • Approach to capital allocation

Quantitative analysis

  • Quantification of target market
  • Quality of growth
  • Second derivative of growth
  • Cost structure
  • Margin trajectory
  • Quality of cash generated
  • Returns on equity
  • Valuation
  • Accounting

Investment decision

The work required to understand each potential investment is extensive . Nartex looks for companies to “marry with”.

Nartex monitors its target universe (~120 global companies) rotating the portfolio in specific circumstances.

  • Creation or destruction of oligopolies (changes in market structure)
  • Increased risk of disruption
  • Acceleration or deceleration of structural growth in the industry
  • Sub-optimal capital allocation by the management team
  • Extreme valuations
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