Phida Capital attempts to determine a company's intrinsic value via an in-depth analysis of the operational (free) cash flows, expected returns on investments, balance sheet structure and the (replacement) value of the company assets.

Companies that are trading at a significant discount to their intrinsic value may be added to the portfolio, subject to a number of factors among others the ownership structure, capital discipline and (potential) corporate governance issues.

Phida Capital focuses on microcap companies (market capitalisation less than EUR 250mio) as, because of their lack of size and stock market trade, these tend to be poorly (if at all) researched by banks, brokers and mutual fund companies, increasing the likelihood of finding significantly undervalued securities.

Germany and the Benelux constitutes Phida's main hunting territory as the manager sees ample investment opportunities in the region that meet its stringent value criteria.