Equity Investment Strategy
Alpha Square Capital seeks to invest in high-quality, developed markets equities that combine strong fundamentals with attractive long-term growth potential. We focus on businesses with durable competitive advantages and wide economic moats, trading at a significant discount to intrinsic value, offering a meaningful margin of safety. Our equity selection is grounded in deep fundamental analysis and long-term conviction.
Undervalued Companies
We seek companies trading below their intrinsic value, where the price does not fully reflect the quality of the business. These opportunities offer upside potential and a meaningful margin of safety, allowing our portfolios to benefit from the market’s eventual recognition of true value. Rigorous fundamental analysis ensures we identify mispricings supported by solid earnings, durable cash flows, and sustainable growth prospects.
Robust Balance Sheets and Strong Cash Generation
Companies with low financial leverage, solid liquidity, and consistent free cash flow form the backbone of resilient portfolios. Strong balance sheets enable firms to weather economic cycles, fund growth initiatives, and return capital to shareholders, while also providing a margin of safety in turbulent periods.
Favourable Cost Structures
We target firms with operating leverage and scalable business models, where incremental revenue contributes disproportionately to profit growth. Efficient cost management, supply chain advantages, and scalable operations enhance margins and underpin sustainable long-term profitability.
Durable Competitive Advantages & Wide Moats
Our focus is on companies with sustainable business models that generate persistent economic advantages. These firms often possess pricing power, proprietary technologies, brand strength, or cost efficiencies that protect them from competitive pressures. Wide moats act as a buffer during volatile markets, allowing intrinsic value to compound over time.
Market Leadership & Share Growth
We prioritize dominant players in their industries, with proven ability to defend and expand market share. Leadership positions not only provide stability and pricing leverage but also create opportunities for growth through new markets, product innovation, or acquisitions, enhancing long-term compounding potential.
Attractive Unit Economics
Investments are selected based on high-quality unit economics, where the economics of producing and delivering goods or services generate superior returns over time. This includes favourable gross margins, predictable contribution to profits, and scalable growth opportunities that reinforce the company’s long-term value creation.