Business Description:
Platinum Capital Limited (PMC) is an Australian-based, global equity fund manager. PMC holds a portfolio of international funds and securities. The investment manager is Platinum Asset Management.

Strategy Analysis:
PMC´s approach is to identify companies with business and growth prospects not currently appreciated by the market. Given its size, PMC uses quantitative screening as an important way of narrowing down the universe for ideas. While reviewing the numbers is part of the approach, PMC seeks to look beyond them at themes and emerging trends. Once an idea is explored, analysts submit a detailed investment report, from which senior personnel scrutinise the idea and seek to identify flaws in the investment case at regular team meetings. Importantly, the purpose of these meetings is not to build consensus. Rather, it is up to the analyst investigating the idea to convince Kerr Neilson to invest. PMC attempts to provide absolute rather than relative returns, so portfolio make-up will differ markedly from the benchmark index (MSCI All Country World Net index in $A). PMC will tend to hold around 150 long positions, constituting approximately 70-80 percent of the portfolio, and around 30 short positions, constituting the remaining 20-30 percent. The house will generally invest in companies larger than US$1.0 billion, and individual positions are usually less than three percent of portfolio value. Country weights are typically unconstrained, and the firm will take sizeable bets in some of the smaller regions. A patient investment approach keeps turnover in-check at around 30 percent per annum. However, an active currency hedging strategy is employed.