Business

“Risk is like fire: if controlled it will help you;if uncontrolled it will rise up and destroy you” – Theodore Roosevelt

Our Investment Approach

Foster Marlon focuses on creating investment opportunities to ensure above-average risk-adjusted returns. Our entire business and investment approach is geared towards achieving this objective. Along with delivering superior returns on investment, we concentrate on the preservation of capital. Foster Marlon uses active asset management techniques to add value to your investment.

Every Foster Marlon investment works according to a detailed business plan with a prime focus on enhancing the asset’s value. We do a thorough risk analysis based on the following specific core principles.

Margin of Safety

We choose our assets carefully and ensure to purchase them at a price below their intrinsic value. It provides us with an opportunity to add value to it, thereby making the investment profitable. This margin of safety is crucial to building up the element of trust in our investors.

Selecting The Ideal Asset For Development

Foster Marlon targets sectors displaying scope for growth in the regional areas of the United Kingdom. When choosing our assets, we look for markets that can benefit from the effects of urbanisation, thereby providing ample scope for appreciation in its value. We focus on distressed assets that are available below its replacement cost. While developing the asset, we assess different market cycles like the macro-economic and occupational markets to influence investment decisions.

Choose The Ideal Asset-Management Teams

Foster Marlon has a dedicated team well versed in managing assets to enhance its value. We also enlist local support to provide their expertise to optimise our investment’s performance. While choosing our working partners, we look for qualities like the capability to forge secure local networks and deal with the concerned asset professionally. We do a thorough risk profiling of our prospective partners to ensure the highest degree of compatibility.

Develop The Asset To Enhance Its Value

We use proactive asset management to drive growth and enhance the asset value by employing various strategies such as,

Develop, refurbish, and reposition the asset
Indulge in active leasing
Scale up the asset by assembling different portfolios by acquiring complementary assets
Optimise the expenses and improve property management techniques
Restructuring and recapitalising the asset
Work with different management teams for building enterprise value in corporate investments.

Flexibility in deciding the investment value

We look for investments of all sizes ranging from the small to the mid-sized and large, depending on the asset class, geographical location, and market dynamics. We are capable of handling significant investment portfolios if the opportunity presents itself.

Managing Risk

We consider investment risk principally in terms of the potential for permanent loss of invested capital. A thorough understanding of the risks via identifying, understanding and controlling is central to our decision making process. We strive only to make investments that meet our strict risk / reward criteria. This disciplined investment approach is a fundamental part of our firm’s method of risk management.

Business Principles

“Ethics is knowing the difference between what you have a right to do and what is right to do” – Potter Stewart

Our success is driven by our people. We hire only world-class professionals who are fun to work with and who understand and believe in the core tenets of our values and beliefs.

Our reputation is our biggest asset. Any capital or investment decisions we take with our business partners is primarily influenced by their impact on our reputation. We take investment in our reputation as seriously as investment in assets.

Integrity and honesty are the two pillars on which we have built our business. We go out of our way to ensure all our deals are fair to all the parties involved and don’t benefit one at the expense of the other. And we expect the same commitment to fairness and propriety from the people and businesses we deal with. We make sure we establish a mutual understanding, appreciation and respect for our business approach and investment philosophy. And if such an understanding cannot be established, we would prefer not to do become business partners.

We believe in a culture driven by meritocracy and make sure the individuals we work with, are given opportunities and rewarded based on their merit. Our shared vision can be demanding to our people. So we try to ensure that the working environment in our offices is fun and those who show merit and loyalty are highly rewarded. Our collective passion and commitment are the key drivers of our growth.

We recognise and appreciate the importance of technology in business and are always striving to leverage technology to make Foster Marlon more productive, efficient and resilient to the vagaries of the market.

We believe in having full control over our investment decisions and this is an integral part of our business approach. We make investment decisions that we believe are right, whether or not they align with conventional wisdom.

While evaluating potential investments we create an environment of open dialog so that all decisions can be debated upon, contrarian viewpoints are given their due consideration and honest mistakes are tolerated.

We strive for excellence in all our undertakings. We consistently seek improvements in whatever we do, without ever satisfying with the status quo.

We always remind ourselves of our limitations and are committed to avoid hubris. We know far too well that if our methodologies are tested and proven and our people are well quipped with the right knowledge and skills, then hubris is the only thing that can bring us down.