As we mark the fifth anniversary since the team, process and philosophy of the Fairtree Global Equity Prescient Feeder Fund changed, we reflect on the milestones achieved over the past half-decade. The Fund has delivered strong risk-adjusted returns across different market climates, driven by our disciplined, style-agnostic approach and an unwavering commitment to fundamental research. […]

By Cornelius Zeeman and Wesley Gardener,Fairtree Portfolio Manager and Equity Analyst Imagine finding a pot of gold at the end of the rainbow; franchising might just be that treasure for capital-intensive companies. Franchising is a business model that has been around for decades, thriving especially in the fast-food sector. Franchised fast-food brands have not only

By Cornelius Zeeman and Isaac Coetzee,Fairtree Portfolio Manager and Equity Analyst Starbucks Corporation Overview. Starbucks Corporation, formed in 1985, has grown to become the world’s leading roaster, marketer, and retailer of speciality coffee. Operating across 86 markets with a global presence of 40 199 stores, Starbucks continues to shape the speciality coffee industry. In fiscal

By Cornelius Zeeman and Isaac Coetzee,Fairtree Portfolio Manager and Equity Analyst Coffee starts its journey as a green bean, the unroasted seed of the coffee cherry. These green beans are harvested, processed, and eventually roasted to become the coffee we know and love. While there are many varieties of coffee, two primary types dominate the

By Cornelius Zeeman and Ashin Daya,Fairtree Portfolio Manager and Equity Analyst Fairtree’s approach to global investment research involves categorising companies into four main buckets (see Figure 1). Companies can exhibit characteristics of multiple buckets and may shift between them as their business models evolve. Apple provides a compelling case study of this phenomenon, transitioning from

By Cornelius Zeeman and Thembinkosi Kweyama,Fairtree Portfolio Manager and Equity Analyst In our previous article on energy drinks, we explored the rise of this drink category in the global liquid refreshment beverage sector. Despite their niche status in the US non-alcoholic and alcoholic beverage markets, energy drinks have secured a 2% market share by volume

By Izaan Buys,Fairtree Equity Analyst The efficient market hypothesis posits a world of perfectly informed, rational investors. In this world, stock prices should fully reflect all available information, making it difficult to identify undervalued opportunities. This is the theory, but the reality is that when sentiment becomes extreme, arguably even irrational, a fascinating paradox begins

By Cornelius Zeeman and Thembinkosi Kweyama,Fairtree Portfolio Manager and Equity Analyst The non-alcoholic beverage market offers a plethora of choices, from carbonated soft drinks and concentrated juices to sparkling and still water. Among these, the energy drink category has experienced remarkable growth over the past two decades, carving out a unique path to prominence.  Energy

By Cornelius Zeeman and Seipati Rakgoale,Fairtree Portfolio Manager and Equity Analyst The United States has managed to avoid a recession thus far, but a slowdown in economic activity is still expected. Current macroeconomic data provides mixed signals: real wages are growing, unemployment remains low, but inflation remains sticky and credit scores are deteriorating.  Wage growth.

By Cornelius Zeeman and Janco du Toit,Fairtree Portfolio Manager and Equity Analyst Animal health refers to the treatment and care of animals to prevent or combat diseases. This field encompasses two main categories of animals: livestock, used for consumption and productive use cases, and companion animals, such as pets, which provide fellowship and companionship to