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About Us
Established in 2004, Beanstalk Investment Management Pty Limited (Beanstalk) is an Australian owned investment manager based in Sydney. Beanstalk recognises the responsibility and relationship of trust associated with wealth management. We believe a solid, ethical approach in daily operations is the cornerstone of successful business. Consequently, we take our compliance obligations seriously. Similarly, our attention to growing and protecting your wealth occupies and engages us continuously.
Beanstalk is focused on maintaining a long-term and sustainable relationship with its clients. Consistent with this, the company believes a long-term approach is conducive to investing successfully. Reflective of the confidence it has in its investment approach, it constructs concentrated portfolios with a long-term focus. Investment decisions are typically contrarian in nature.
Beanstalk offers investment solutions to financial advisers, charities, family offices, high-net-worth individuals, corporates, self-managed super funds, international investors and institutional clients.
Investment Approach
Beanstalk believes markets are driven by short-term performance objectives. Placing oneself outside this constraint and focusing on long-term valuations forms a fundamental competitive advantage of the investment process. This approach, by deduction, results in the investment process directing the portfolio toward investments that are often highly contrary to popular market opinions. The key to success in this regard is to have a firm grasp of the fundamental long-term valuation of an investment. In this respect, Beanstalk believes an investment is worth the present value of its discounted cash flows and what the market has been prepared to pay for those cash flows over time. Further, Beanstalk is attracted to companies whose cost of capital is high. For these investments, long-term expected returns are set to increase because of low current investment. Beanstalk also believes capital preservation is crucial to long-term superior returns. As such over-priced risk is removed from the portfolio using Beanstalk output controls which include the requirement that investments within the portfolio contain at least ten years of audited financial data.
A further risk management tool is implemented at the portfolio construction level. Here Beanstalk employs its proprietary Beanstalk diversification model in constructing the portfolio. In so doing, it further reduces the risk of the portfolio for a given return thereby optimising the efficiency of the portfolio.
This long-term approach to investment management is constructive for pre-tax returns. It is also beneficial in the quest to generate superior post-tax returns. To this end Beanstalk devotes time to the in-house administration of the underlying portfolio and generates a return for its clients that is measured in pre- and post-tax terms. The tax effectiveness of an investment is measured by generating its valuation in post-tax terms. That is, a ranking which ascribes a value to franking credits and any capital gains tax liability.