Consistent with these basic principles, in selecting the best securities to short sell, we look to sell the shares of companies with weak fundamentals for more than they are worth.
Watermark follows a disciplined investment process which facilitates the identification of leading Australian public companies that are undervalued or overvalued by the share market.
While the market is generally efficient at valuing companies, it is by no means perfect. From time to time mis-pricing of shares occurs, providing opportunities to acquire good companies below their fair value, or to sell short the shares of weaker companies above their value.
By conducting deep fundamental research on companies and industries, our investment process looks to identify mis-priced securities by taking advantage of some important shortcomings of the share market: