Home Approach

From overlooked to fairly valued.

Three disciplined steps, applied with patience: identify undervaluation, engage constructively, realise value.

The process

Identify undervaluation

Rigorous bottom-up analysis to find small and mid-cap companies in Developed Asia trading well below intrinsic value.

We look for strong or under-used balance sheets, valuable assets that the market overlooks, and governance or capital-allocation choices that can be improved.

Engage constructively

We build significant stakes and open a direct dialogue with boards and management, setting out specific, evidence-based proposals.

Where private dialogue does not move things forward, we explain our case to fellow shareholders through public letters, shareholder proposals and, where warranted, requisitioned meetings.

Realise value

Catalysts such as capital returns, governance improvements, mergers on fair terms and privatisations.

We stay invested through the process and judge success by whether the gap between price and value closes for all shareholders.

What we look for

The ingredients of an engagement.

A clear discount

Shares trading well below net asset value or the intrinsic value of the business.

Excess capital

Cash or assets that could be returned, redeployed or sold to benefit shareholders.

Room to improve governance

Board composition, fees, related-party arrangements or management structures that can be aligned with shareholders.

Identifiable catalysts

Specific actions that can close the gap, from buybacks and special dividends to fair-value transactions.

How we engage

The tools of an engaged shareholder.

See them in practice →

Private dialogue

Meetings with management and directors, with written proposals.

Public letters

Open letters to boards that set out our analysis and proposals.

Shareholder meetings

Questions, votes and proposals at annual and extraordinary general meetings.

Requisitions

Calling meetings with fellow shareholders when the law allows and the case requires it.

Regulators

Raising governance questions with regulators and the exchange where appropriate.

Board representation

Joining boards where that helps to deliver change for all shareholders.

Principles

Constructive, evidence-based and for all shareholders.

Constructive first

We prefer to work with boards in private and escalate only when needed.

Evidence-based

Our proposals rest on published numbers and are open to challenge.

All shareholders

We seek outcomes that benefit every shareholder, not only ourselves.

Institutional investors and boards: we welcome the conversation.

enquiries@quarzcapital.com

Office

Quarz Capital ASIA (Singapore) Pte. Ltd.
160 Robinson Road, #19-09 SBF Center
Singapore 068914