At Forager, we invest our personal wealth in our funds alongside investors. We have committed to remaining small in order to be able to invest in companies that we believe could provide outsized returns for our investors, placing our focus on this rather than just growing funds under management.

We then make our investment decisions using a valuations based approach. This requires a business-like approach, an independent mindset and patience.

Share prices represent what it costs, at one point in time, to buy a tiny proportion of a company listed on the stock exchange. Rather than simply looking at the current share price, we also take account of a company’s underlying, or ‘intrinsic’, value. You can never get an exact fix on this figure but you can sometimes make a reasonable estimate by undertaking fundamental analysis. This involves looking at a company’s financial statements over time and making an assessment of its management, markets and growth potential.

Share prices vary enormously over the course of a year. But a business’s revenue, profit and cash flow rarely change anything like as much as its share price. The reason for this is that the price of a company’s shares is only a reflection of what people are willing to pay for them at any given time. Sometimes, usually when prices are rising, people are greedy. When prices fall, they become fearful and rush for the exits.

All this emotion can push the share price a long way from the intrinsic value of the underlying business. We aim to benefit from this by buying shares when they’re trading at significantly less than what we believe their intrinsic value to be.

The difference between a stock price and a company's value

We publish regular insights about investing and our valuation based style. We love to talk about it too and even run our own “Stocks Neat” podcast. Have a read through the transcript in this article, or listen to this podcast episode about the difference between a stock price and a company’s value to find out more about our investing style.


Investing strategy

As the Forager name suggests, our style of investing involves scouring the world looking for undiscovered opportunities.

We like buying smaller, less well known businesses that may provide opportunity for higher returns. We also like buying mid to large liquid stocks if they are available at reasonable prices. These types of business add resilience to the portfolios, and can provide an important source of liquidity in volatile markets where there may be other opportunities available at the smaller end of the market.

Our small size gives us the flexibility to combine these types of businesses into our portfolios. If the potential returns are high enough, we have no qualms investing in unknown businesses. And if the situation demands it, we are prepared to be activists in order to realise the value inherent in a company’s shares. This approach has worked well for us over the years.

Our aim for both mid to large liquid businesses and smaller less well known companies is to buy shares at prices we believe to be substantially less than their underlying value. Then we wait for the market to correct this mispricing.

This is more difficult than it sounds, which is why we have a rigorous research process and healthy debate within the team. Businesses change and stock valuation is an inexact science, so we only invest in stocks where the gap between our estimate of its value and the current share price is large enough to compensate for the uncertainty.

How to Find Investment Ideas

How do we actually find the stocks that make it into the portfolios at Forager Funds? Research starts with idea generation – here you can find out more about how Gareth Brown, Portfolio Manager of the Forager International Shares Fund, finds investment ideas.


Our funds

Fund Overview

  • Concentrated portfolio of ASX-listed companies, typically in smaller companies unknown to many investors
  • Nimble and deliberately capacity-constrained to access smaller companies
  • Focused on capital growth, with semi-annual distributions1
  • On the ASX as a Listed Investment Trust (LIT) under the ticker FOR, allowing flexibility in times of market distress.

1The Responsible entity reserves the discretion to amend the trust’s distribution policy.

Fund Overview

  • A combination of large liquid, resilient businesses and smaller less known company opportunities
  • A broad sector and market cap mandate that allows us to scour the market for the best opportunities
  • A concentrated managed portfolio of 20-40 unique global equities
  • Investment team with deep pockets of expertise particularly in Europe, the UK, and the United States.