COMPANY

EDGE INVESTIMENTOS

• Edge Investimentos is an independent asset manager focused on the active management of equity investment funds.

• As value investors, we seek to concentrate our investments on companies in which, after deep investigation into qualitative and financial aspects, our conservatively-calculated estimates of intrinsic value are widely superior to current market prices. In our view, this philosophy will allow us to obtain substantial absolute returns in the long term.

 

pdf2007 Introductory letter to shareholders
(Investment Philosophy)

 

INVESTMENT PHILOSOPHY
• We are long-term investors. We seek to reach considerable appreciation of capital through the acquisition of minority stakes in publicly-traded companies.

• We choose our investments based on the margin of safety that the current market price offers over our fair value estimate for the company, supported by a thorough study of the financial and competitive situation of the business, management quality, growth perspectives and corporate risks.

• We will always focus on the preservation of invested capital through the constant monitoring of operating, financial, regulatory and corporate risks inherent to our investments.

• We concentrate the assets of the fund on our best ideas.

• We do not perform market timing and discourage short-term speculators from investing with us.

• Our partners are relevant co-investors in the fund. We understand that this alignment of interests is a paramount condition for the exercise of our activity.

• We do not charge performance fee over inflation. We believe that an ample market index represents truthfully represents the minimum remuneration corresponding to the risk incurred by the equity investor. Therefore, we will only be compensated for performance when we exceed the performance of the Ibovespa index (with high water mark).

• We will consider closing the fund for new investments whenever we consider it beneficial for our investors.