Investment Objective
Bain Capital Public Equity employs long/short equity strategies that combine rigorous fundamental research with analytical portfolio construction to identify and capitalize on opportunities across the global equity markets. We seek to generate consistent, positive absolute returns over a full market and economic cycle while exhibiting minimal beta and correlation to the MSCI World and other macro factors. We partner with our clients to drive incremental value, including transparency and service, shared insights, potential co-investments and strategic relationships.
Investment Philosophy
We invest where we believe we have unique insights on forward earnings power that the market does not appreciate over the intermediate 2-3 year time horizon.
We focus on good businesses we are excited to own for multiple years under most macroeconomic circumstances. We seek proven industry leadership, strong management teams and a defensible business model with pricing power.
We believe entry points matter and we are agnostic to industry, sector and geography. We aim to identify the best investment.
We believe deep domain expertise and differentiated fundamental due diligence drive confidence in owning a concentrated portfolio.
We aim for constant and what we believe is rigorous monitoring of investments for whether our views are in or out of consensus.
ESG Principles
We believe that Environmental, Social and Governance (ESG) considerations, combined with the right active investment approach, can be an important driver of positive alpha and excess return generation. Accelerating technological advancement/disruption and regulatory ESG-related initiatives are measurably impacting (both positively and negatively) business unit-level economics. We believe that investing through a thoughtful ESG lens helps us avoid risk and drive better long term performance.
- 1 Stewardship Combine fundamental approach with good corporate citizenship and proactive ESG awareness.
- 2 Focus Stay within our core areas of Domain Expertise, avoid investing solely on the premise or promise of ESG. Emphasize opportunities where we believe ESG is a viable economic driver or has material tangential benefits.
- 3 Quality Focus on good businesses we want to own over multiple years. Avoid making investments because it “feels” good or simply has a high ESG rating. Adhere to the Bain Capital Public Equity Investment Principles.
- 4 Environment We seek to avoid companies doing harm; consider opportunities where consumer, social and regulatory preferences/trends create an economic driver.
- 5 Social We aim to identify good economic businesses where the core product or service helps alleviate a social challenge.
- 6 Governance We aim to identify good management teams with strong operating skills and smart, shareholder friendly corporate governance. Seek transparency, shareholder communication, ethical behavior and diversity of thought. We opportunistically engage with management and boards behind the scenes.
