Investment Process

The Celeste investment process is applied consistently across the size and quality spectrum of Australian listed smaller companies.

The research process is multi faceted in nature with a emphasis on valuation, accounting quality and financial rigour. Consideration is given to business model robustness and the scope for significant change in the operational and competitive landscape. Assessment of management and board is also undertaken with a weighting on the issues of integrity, depth of experience and historic performance track record. 

Responsible Investment factors are an important and fully integrated part of the Celeste investment process. Celeste has been a signatory to the United Nations - Principles of Responsible Investment since 2008. You can see our responsible investment policy here.

Celeste considers a broad range of valuation methodologies in its investment process. We believe that valuation needs to reflect the financial and operational traits of the company in question, rather than a mechanistic and dogmatic adherence to any one valuation methodology. In essence we believe that the best analytical results generally emerge when analysts have a flexible mind set and when they are equipped with a broad range of skills and experiences.

 The Celeste investment team has an active company visitation program with over 300 company interactions annually. The investment team uses a diverse and eclectic array of information sources including local and international listed companies, unlisted companies, industry functions, trade journals, domestic and international media.

Celeste believes that through the gathering of information, collegiate debate and the questioning of commonly held market beliefs, there exists the potential to minimize the risk of capital loss and increase the potential for gain.

Our objective is to generate returns which exceed benchmark returns. The holding period of investments is commonly around 3-4 years and the portfolio has modest turnover levels.  We invest in a range of stocks, across industry sectors to achieve our objectives with appropriate diversification..