Standard manages its founding family’s shareholdings and serves in an advisory capacity for investment funds and like-minded partners worldwide.
We believe in hard work, humility, singularity, skin in the game and total integrity. Focused on listed companies, we follow a value investing blueprint — in other words, we endeavor the disciplined pursuit of mispriced assets off the beaten path — and seek opportunities across all industries and geographies.
Commercial Real Estate
Designed as a platform to redevelop a vast portfolio of prime but underexploited real estate assets, Seritage (US:SRG) re-leases commercial space formerly occupied by Sears to a diversified group of tenants. Rents grow fourfold in the process — a spectacular uplift that paves the way for splendid value creation over the next decades. Investment rationale for Washington Prime Group (US:WPG) is equally straightforward: maximum pessimism but distorted perception (“death of retail”), strategic assets, sound balance sheet, excellent management, trading at the time of our purchase for three years of net cash-flows plus a 17% dividend yield and a 50% discount — at least — on private market value.
To buy when others are despondently selling requires the greatest fortitude but pays the greatest rewards. Soundly capitalized, superbly managed, trading for a fraction of net asset value and a single digit multiple of bottom-cycle earnings, Tisch family-controlled Diamond Offshore (US:DO) sports a good backlog and a competitive fleet. In Canada, Peyto Exploration & Development (CAN:PEY) has built an enduring cost advantage by securing the best plays in the Alberta’s Deep Basin, where it extracts sweet gas from liquids-rich, low-permeability reservoirs. Both companies stand out as spectacular investment opportunities and perfect vehicles to ride the recovery of energy markets.
In Switzerland, recently incorporated Idorsia (SWX:IDIA) might be one of the most promising pharmaceutical ventures worldwide. Headed and majority-owned by accomplished scientists Jean-Paul and Martine Clozel, of Actelion fame, the company was spun-off from the latter and listed shortly afterwards with a pipeline of 11 compounds, of which four have already entered phase 3. Actelion was sold to J&J for €30bn: according to Ms. Clozel, there is material to build a second Actelion — and even “a better Actelion” — in Idorsia’s pipeline, currently valued for less than €2bn. In a like manner, Knight Therapeutics (CAN.GUD) comes across as a carbon copy of Jonathan Goodman’s first venture, Paladin Labs, listed at $1.50 a share in 1995 and sold to Endo in 2014 for $151 a share.
Run and majority-owned by Luc Tack — the turnaround artist of Picanol fame — Tessenderlo (BEL:TESB) sports an entrenched competitive position and has plenty of leeway to grow, especially in Europe where management is building up an operation modeled after the highly successful North-American subsidiaries. Yet the market failed to catch up, leaving the company undervalued on both a conservative sum-of-the-parts and earning power assessments. Colfax (US:CFX) is a fast-growing, well-capitalized conglomerate owned by brothers Mitchell and Steven Rales — founders of extraordinarily successful Danaher Corporation — that traded as a hopeless cause at the time of our investment.
We support charitable and philantropic organizations in France, Vietnam and Togo. With the help of our network of partners, we strive to develop high-impact social enterprises with a specific focus on children and education.