The value of experience

The foundation of our business success and our clients’ investment success

 

Truffles are rare & notoriously difficult to find

In a similar way, we are experts at finding superior investment opportunities to grow our clients’ money

 

Sustainable and reliable investment returns

Our investment team follows a fundamental valuation-based philosophy and disciplined investment process

 

The value of experience

We believe experience provides perspective, uncovers opportunity, and guards against risk

 

Truffles are rare & notoriously difficult to find

In a similar way, we are experts at finding superior investment opportunities to grow our clients’ money

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The story behind our name

Truffles are a rare, highly sought-after delicacy that require specialist expertise to grow and harvest

A truffle is an edible type of mushroom that is seen as one of the most precious commodities in the culinary world. One of the things that make them so valuable is that they are notoriously difficult to find. Although some of the species can be grown, the combination of alkalinity and tree roots in the soil has to be just right, and it’s extremely difficult to achieve this.

To top it all, truffles have an odd shape and a very strong, unpleasant odour. This means that unless you know all about truffles, you are unlikely to recognise one.

In a similar way, we are experts at finding superior investment opportunities to grow our clients’ money

Like truffles, superior investment opportunities are scarce. To identify opportunities with the highest growth potential at an appropriate level of risk requires specialist skills, training and experience. It is essential to know what to look for, where to look, to understand the timing (in the context of the market cycle), and to recognise the true potential of an opportunity that may not be obvious to most of the market.

Our name is therefore testimony to our commitment to unearthing true value for our clients by delving below the surface.

Investment philosophy Meet the team

About the company

Our history

2008

Truffle was founded by Louis van der Merwe and Hannes van der Westhuyzen. In April 2008, the company was incorporated and in October of the same year we started trading.

2009

Our first product – Black Truffle – opened for investors on 1 July 2009. During August, the first assets were raised for the Specialist Equity Fund and the Flexible Fund.

2010

Truffle was authorised as a unit trust manager under CISCA in November 2010.

2011

The Balanced Fund – the first Regulation 28-compliant fund – was launched in November 2011.

Why invest with us?

Team experience

The individual, long-term experience of our team helps us make well-informed, sound investment decisions.
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Proven track record

We have a proven track record of sustainable superior investment performance.

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Personally committed

We are personally committed to our clients’ success through co-investment.
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Owner-managed

We are owner-managed, which means we always act in our clients’ and the business’ best interests.
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Company size

Our size enables us to make the most of investment opportunities.
Read more.

Personal service

Being smaller also means you can rely on personal service.
Read more.

Our investment philosophy

and process

We follow a valuation-driven investment approach

Our investment team follows a fundamental valuation-based philosophy and disciplined investment process, coupled with a rigorous risk management approach, to provide investors with sustainable and reliable investment returns. As a boutique investment manager, we complement this investment approach with efficient implementation, competitive fees and personalised service.

Step 1 We determine the intrinsic value of companies

How do we do this?

  • We look at long-term market and company fundamentals
  • We avoid focussing on short-term economic news flow and sentiment, which is largely unpredictable

Find out more

What fundamentals do we look at?

  • A company’s historic financial performance
  • Industry data and competitor information
  • How the market has priced the share relative to what it considers to be meaningful financial metrics

What do we consider?

  • Whether the business environment has changed or whether the financial history is sufficiently long and stable enough to be useful in our analysis
  • History is not the only guide to providing the best estimate of future returns

Step 2 We regularly perform stress testing to minimise risk

How do we do this?

  • We use our own research and proprietary models
  • We maintain regular contact with company management
  • We avoid exposure to companies in whose assessed intrinsic values we do not have a high degree of confidence
  • We avoid over-concentrated exposures to specific shares and sectors

Find out more

Why do we do this?

  • The valuation process is subjective – there is always a risk that our best estimate of an intrinsic value may vary and may be wrong
  • To ensure our estimates are as accurate as possible, we continually review company fundamentals

Step 3 We determine whether it is an appropriate time to invest

How do we do this?

  • The intrinsic value of a company should grow at a stable rate over time
  • But because share prices are inherently volatile, there are times when the price is well below the company’s intrinsic value
  • This offers valuable buying opportunities
Step 4 We evaluate the investment against long-term returns

How do we do this?

  • Because our decisions are based on long-term fundamentals, we know that the decisions we implement today may only bear fruit in several years’ time
  • That is why we evaluate the investment against long-term returns
Step 1 We determine the intrinsic value of companies

How do we do this?

  • We look at long-term market and company fundamentals
  • We avoid focussing on short-term economic news flow and sentiment, which is largely unpredictable

Find out more

What fundamentals do we look at?

  • A company’s historic financial performance
  • Industry data and competitor information
  • How the market has priced the share relative to what it considers to be meaningful financial metrics

What do we consider?

  • Whether the business environment has changed or whether the financial history is sufficiently long and stable enough to be useful in our analysis
  • History is not the only guide to providing the best estimate of future returns

Step 2 We regularly perform stress testing to minimise risk

How do we do this?

  • We use our own research and proprietary models
  • We maintain regular contact with company management
  • We avoid exposure to companies in whose assessed intrinsic values we do not have a high degree of confidence
  • We avoid over-concentrated exposures to specific shares and sectors

Find out more

Why do we do this?

  • The valuation process is subjective – there is always a risk that our best estimate of an intrinsic value may vary and may be wrong
  • To ensure our estimates are as accurate as possible, we continually review company fundamentals

Step 3 We determine whether it is an appropriate time to invest

How do we do this?

  • The intrinsic value of a company should grow at a stable rate over time
  • But because share prices are inherently volatile, there are times when the price is well below the company’s intrinsic value
  • This offers valuable buying opportunities
Step 4 We evaluate the investment against long-term returns

How do we do this?

  • Because our decisions are based on long-term fundamentals, we know that the decisions we implement today may only bear fruit in several years’ time
  • That is why we evaluate the investment against long-term returns