Thoughtful,
patient investing.
About Us
Lorac Investment Management is an independent, privately owned investment management firm based in Luxembourg. Founded in 2008, Lorac Investment Management has successfully applied longer-term and often contrarian strategies in its equity investments around the globe on behalf of its institutional client base.
The Purpose, Vision and Values statement codifies Lorac Investment Management‘s corporate goals and behaviours for clients, staff, and all stakeholders in our firm. Please click here to see the full statement. The statement also reflects the need to ensure that our business and staff exhibit the right attributes to help deliver good conduct leading to positive, client-centric outcomes.
Philosophy
Over more than three decades, Lorac Investment Management’s investment philosophy has evolved, but two simple ideas about how capitalism works in the long run have always been paramount.
The first is the observation that high returns in industries tend to attract capital and competition, just as low returns repel them. The resulting ebb and flow of capital affects long-term returns for shareholders in often predictable ways, what we call the capital cycle. Since high levels of investment tend to be detrimental to shareholder returns over the long run, Lorac seeks to invest in companies with high returns sustained by barriers to entry deterring investment or companies with low returns in industries where investment is declining.
The second guiding idea is that management skill in allocating capital is vital over the long term. The best managers understand and seek to alter the capital cycle in their industries through sensible reinvestment choices. Decisions about new capital projects, acquisitions or disposals, and equity issuance or buybacks are critical to the ultimate outcome for shareholders.
Publications
Lorac Investment Management’s investment team writes articles for the firm’s Global Investment Review, which is sent to clients and their advisers eight times a year.
Lorac Investment Management Sàrl
2 Rue Hildegard von Bingen – L-1282,
Luxembourg B137635
Internationale MwSt.-Nr : LU22671128