Harbor Introduction

We are an intellectually curious crew here at Harbor and thus are voracious readers. We are always on the lookout for thoughtful commentaries that challenge our own opinions or make us think about markets in new ways. Like many of you, our e-mailboxes are flooded with investment commentaries, but truly distinctive views are rare, by definition. One reliable source of insight that we eagerly anticipate is Marathon-London’s Global Investment Review (GIR), where the PMs share their latest thinking. Marathon-London’s core investment philosophy – the capital cycle approach – requires an atypically long investment horizon, which allows the PMs to think differently from the vast majority of the competition. Consequently, their thought pieces often express perceptive, non-consensus views, which has made Marathon-London’s GIR a much admired and sought-after publication. We are pleased to share some of our favorite articles from the GIR vault that illustrate important and distinctive aspects of Marathon-London’s investment approach.

Unlike many of their peers, Marathon-London PMs are skeptical of forecasts, as outlined in the article “Forecasting Problems.” Rather than spending time trying to make precise predictions about a company’s sales, profit margins or costs of capital, Marathon-London PMs believe their effort is better spent deeply understanding businesses and industry cycles and assessing management’s capabilities and incentives. The second article, “European Banks: A Golden Era?” provides a case study of Marathon-London’s capital cycle approach as well as a powerful illustration of why it requires discipline, patience, and a long-term mindset.

We think these GIR articles—along with others we plan to provide in the future— will provide you with a deeper understanding of Marathon-London’s process and a greater appreciation for the merits of their investment approach.

-Sonya Morris, CFA
Managing Director