PRUDENT INVESTMENT TRUST

Investment Philosophy

Prudent Equity follows a bottom-up value investing approach, aiming to identify companies trading below their intrinsic value to provide significant upside potential with a margin of safety.

Core Pillars of their Strategy:

• Capital Protection & Growth: The primary focus is on capital protection, while aiming for returns that substantially outperform benchmark indices.

• GCP Model: They often utilize a “GCP” framework:

  • G (Growth): Companies growing at high rates.

  • C (Cheap): Buying at a significant discount to estimated intrinsic value.

  • P (Price): Ensuring entry at the right price.

• Quality Metrics: They emphasize strong corporate governance, efficient capital allocation, and forensic accounting. They explicitly avoid companies with high leverage or frequent equity dilution.

• Long-Term Perspective: They view long-term investing as a “series of several short terms,” focusing on compounding capital rather than chasing specific “multibagger” stocks.