Equity Research and Investment Advisory

Moulton Harrox (“MH”) is an equity investment business, publishing compelling ideas for members at MHM and providing research and investment advisory to corporate clients.

Equity Research and Investment Advisory to Corporate Clients

With MHM research ideas providing the cornerstone investments of our model portfolio, Moulton Harrox provides corporate clients with equity investment advisory services

We help corporate clients to construct, monitor and maintain a portfolio of equity investments in line with our own investment approach. Our core service is helping corporate clients utilise excess cash on their balance sheets to diversify their investments and generate compelling returns on an asset that would otherwise decline in real terms

Independently minded and prepared to look beyond the consensus, we are focused on generating superior returns through investing in a concentrated number of fundamentally under-valued businesses. Our core focus is on micro, small and mid-cap businesses in the UK, Europe, North America and Australia, with investment ideas across a broad range of sectors including logistics, engineering, marketing, software, technology, natural resources, healthcare, gaming, alternative financing, industrial services and chemicals

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Nick

Founder & CEO

Nick has more than 22 years’ experience in financial markets with a unique profile combining financial, operational and governance expertise. He completed >$30bn of M&A/capital market transactions as an adviser and principal and has held board roles of private equity owned investee companies. In 2019, he began investing 100% of his liquid assets in a long-term, concentrated equity portfolio.

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Sarah Shilling

STRATEGIC ADVISOR & COMPANY SECRETARY

Sarah is a c-suite level, PR and marketing expert with extensive experience across a wide range of industries. As an Advisory Board member of Angel Academe, the award-winning angel network investing in female-founded tech start-ups, Sarah brings significant investment insight alongside her operational and communications expertise.

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Moulton Harrox equity research for individual and corporate clients

Corporate clients contact us here

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Individual investors join us here

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Moulton Harrox’s approach to investing

Belief that the lower the risk, the higher the reward

  • Buying ‘low’ provides the biggest margin of safety (lowest risk) and the largest multiples of return (high reward) when fair value is recognised by the market
  • The most unpopular stocks provide the most compelling valuations and the lowest risk if your thesis is correct (popularity and volatility are not risk)
  • Identify valuation dis-locations and exploit opportunities in inefficient markets where price doesn’t equal value
  • Insistence on margin of safety to probability weighted expected values
  • Preference for downside protection in the form of assets (property, brands etc) and IP

Concentrated portfolio of 10-15 investments at any one time, providing some diversification but exposure only to the most compelling risk/reward ideas

  • The top 15 ideas are better than the next 15 ideas
  • Mixture of earlier stage companies and proven cash generating compounders to manage risk
  • No shorting – a 100% upside limit with unlimited downside isn’t a game we want to play
  • No leverage – it’s really, really hard to go bust if you don’t have any debt

Making ‘simple’ investments

  • An understandable business model with forecasts based on a small number of KPIs
  • A ‘no brainer’ value proposition that represents a compelling risk/reward opportunity
  • Unlikely to lose money over the long term unless the thesis is badly wrong

Avoiding ‘too difficult’ investments

  • A complicated business model requiring a multitude
    of unknowable assumptions where there is a chance
    to make an average return if you get everything right

Valuation matters and preserving capital is paramount

Moulton Harrox is driven by a risk-adjusted expected return approach, focused on fundamental valuations. We believe in:

  • exploitation of opportunities in inefficient markets – share price does not equal value
  • a refusal to pursue maximum return at the cost of maximum risk – valuation matters
  • insisting on capital preservation – if you don’t lose money, you can only make money