Anticipating Trends through Ethnographic Research
To capture opportunities, our starting point is to identify long-term trends, size the opportunity, time the opportunity, and identify ways to access the largest opportunities.
A consumer goods company uses similar research to design and execute a plan to enter the market. We identify companies that can best adapt to capture the trends that we identify. We refer to this research as Immersions research.
The Immersions research is an ethnographic research process in which we meet with consumers in their homes in their villages and towns. Ethnography is an anthropological tool that allows the researcher to become immersed into consumers’ lives, their surroundings, and their behaviour patterns, including their values. The research helps the team to understand the sorts of lives that people lead, their aspirations and anxieties, the choices that they make, and ultimately what they see as the solutions to their own problems.
Immersions research aims to give these consumers a voice. It allows us to take a step into other people’s shoes, and to see the world through their eyes. The discussion guides that we use focus on social issue topics such as access to finance, access to healthcare, and access to education. At the same time, the manager spends time in rural areas where people’s survival can depend on protecting the environment that provides for their livelihood.
We combine the insights from our immersions with disciplined rigour as we evaluate all risks (including ESG risks), financial returns and cash flow. As a result, we believe that we have a truly differentiated approach which reveals genuine opportunities for investment in growth in these social and environmental themes of tomorrow.
Our purpose at Trinetra is to have positive impact as we invest to produce excellent returns for clients.
Our Investment Philosophy
We aim to deliver strong risk-adjusted returns by
anticipating social and environmental themes in advance of the market, and maintaining a deep understanding of each theme through the investment cycle
investing in companies with sustainable business models and growth for which we can factor all risks, including ESG, in our risk assessment methodology
actively engaging with managements whose interests are aligned with investors and who have shown discipline in managing their cashflows and balance sheets
We try to understand the risks that Internal Audit has identified, and how they are monitoring and controlling the risks. This gives us an opportunity to bring to their attention risks that we believe should be included in their risk assessment.
During meetings with management, we make clear our investment thesis. We continuously engage with management, but if they deviate from the agreed strategy, we immediately exit the position without engagement. An example would be where the management’s strategy was to grow organically but then the management acquires in a segment which our Immersion’s research has not identified as a growth area.
During our engagement, we also discuss with management how we voted our proxies and try to initiate a dialogue on what change would be needed for us to be supportive in future shareholder votes.