Our story and what we look for

We employ a research intense process and selection criteria like Private Equity to identify and develop investment ideas. We are passionate about allocating capital to great businesses and business people and to see them build even stronger companies over time and hence creating great value for Elementa. We look for strong growth, cash flow and companies in transition that in turn are positioned in a way which makes our probability of success high. In terms of investment style we define this approach as value-GARP, a strong emphasize on qualitative factors. We strive to find high risk/reward investment opportunities that strengthen our likelihood of success, meaning we seek alpha instead of beta. The aim of our short side is to generate absolute return besides the beneficiary effect of reducing market risk from a portfolio standpoint. Sustainable businesses (ESG) is a hygiene factor of great importance in identifying long term sustainability in the business model. With a broad network of industry professionals at our disposal we can maximize the scope of our reach, hence also maximizing our potential for great returns.

For our longs we try to find:

• Structural growth instead of cyclical growth

• Positive trends instead of turn arounds

• Trends within sector niches instead of sector and/or factor bets

• Rollup potential, in combination with organic growth and cash flows

• Cash flow generative business models

 For our shorts we try to find:

• Themes with negative business trends where we see capital outflows

• Volatile companies, cyclical and/or project based

• Companies with doubtful accounting