An investment management firm dedicated to investing in GARP (Growth At a Reasonable Price) companies across sectors with a long term perspective to uncover Emerging Leaders globally.
Investments are selected based on the following criteria:
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Is there stable recurring or re-occurring revenues?
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Is there a long term competitive advantage?
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Do we expect above average revenue growth and free cash flow generation?
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Is the valuation reasonable?
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Can management be trusted?
Our Focus
TH GARP Investments is focused on investing in companies that have the following:
ABOVE AVERAGE REVENUE GROWTH
We target companies with high revenue growth potential. Our strategy emphasizes scalable business models, strong leadership, and significant Total Addressable Markets (TAM) to drive sustainable long-term success.
PREDICTABLE REVENUE STREAMS
Our focus on recurring and reoccurring revenue ensures a steady income stream, enhancing the resilience of our portfolio. We prioritize businesses with subscription models and repeat sales to secure consistent cash flow.
FREE CASH FLOW GENERATION
We prefer companies with robust Free Cash Flow (FCF) generation. We believe that sustained positive cash flow gives companies the ability to reinvest, innovate, and weather economic uncertainties.
REASONABLE VALUATION STANDARDS
We seek companies with a Price/Earnings to Growth (PEG) ratio below 1. This metric signifies that a stock is reasonably valued relative to its expected earnings growth, ensuring smart investment decisions.
STRONG ECONOMIC MOAT
We identify companies with a significant economic moat—sustainable competitive advantages that protect them from market pressures. We focus on brands with a strong competitive position, network effect, global expansion potential and/or technology advantage
STRATEGIC DIVERSIFICATION
We understand that diversification is crucial for risk management. Our strategy spreads investments across various sectors and regions to create a balanced portfolio.
COMMITMENT TO QUALITY & DISCIPLINE
Our approach prioritizes financially healthy companies with strong earnings and stable balance sheets. We incorporate technical analysis to identify optimal entry and exit points for our investments.
SMALL & MID-CAP EMPHASIS
We focus primarily on small and mid cap companies on account of their potential for significant growth. These companies often present exciting opportunities for high long term revenue growth. Selectively we may also invest in large cap companies with a long runway ahead of them.
RISING RETURN ON INVESTED CAPITAL (ROIC)
We focus on companies with high ROIC or expanding ROIC over the next 2-3 years. Companies with high ROIC suggests strong capital efficiency and maximising shareholder value.