Fenestra limits its attention to about 50 outstanding companies but will invest in no more than 10 of them. This restricts the portfolio to only five or six outstanding performers. It is a style of investment advocated by the world's most famous investor, Warren Buffet, of whom CEO William Meyer is an avowed disciple.
The criteria for investments are simple but top of the list is honesty of management. Other key investment criteria include an established profit history, a growing market with growing margins, strong cash generation ability and some blue-sky potential. It is also preferable if the managers are very significant shareholders.
Since inception in 1990, Fenestra Asset Management has regularly outperformed the market (as measured by the ALSI). In recent years, Fenestra’s greatest successes included limiting the negative return in 2008 to under 15% when the ALSI showed a 26% drop after the global financial meltdown.