Melford's central goal is the real preservation of capital for its investors and achieving attractive risk-adjusted returns by employing a value-based investment approach. This typically involves targeting 'turnaround' situations where focus, contrarian instincts and intensive asset management can combine to deliver superior returns on a risk-adjusted basis.
A focus on fundamentals
We benefit from a long heritage of property ownership and possess an ingrained understanding of the key dynamics affecting real estate investment, including a cogniscence of the highly cyclical nature of the asset class. We concentrate on the fundamentals of price, location, situation, quality and cashflow and use our comprehensive understanding of our asset class and its participants to guide and enhance our asset selection process.
We believe that specialising on a fairly narrowly defined market sector or location, and concentrating our portfolio in a limited number of assets, enhances our ability to originate, price and manage transactions successfully.
Discipline and Risk Management
Formed during the recession of the 1990s and developed over the intervening period, our management team has built a robust approach to risk management that involves considerable analysis and financial discipline. In considering transactions, we place particular emphasis on understanding the downside risks presented, looking to build a "margin of safety" into every acquisition we undertake. This necessarily means that at times we are forced to endure relatively long periods of inactivity. We are happy to differentiate ourselves in this way.