Out-of-Favor, Under-appreciated Industry

We tend to be a contrarian private equity investor. We try to avoid being influenced by swings in conventional wisdom about the relative attractiveness of industries. Instead, we seek to identify out-of-favour, under-appreciated industries, and we have successfully invested in industries such as rural coal mining equipments, coal refining, commodity chemicals, coal mining parts among others when they were generally perceived to be out of favour with the markets.

We also try to identify developing industry trends in order to capitalize on them before they become widely appreciated and to pursue opportunities to change the structure and profit potential of specific industry sectors through consolidation.