Investment Philosophy

Investment Principles

  • Protect the integrity of investors’ capital
  • Do not be afraid of contrarian thinking
  • Prudence is paramount in taking on leverage
  • Be patient with our investment decisions
  • Seek a margin of safety with our capital commitments
  • Seek out attractive investments around the world and across asset classes
  • Integrate ESG Investing to seek to reduce risk

All of these principles add up to an investment philosophy that is value-oriented and responsible and one that we believe has the potential to create above-average returns for our investors over the long haul while limiting downside exposure.

Investment Process

As the stewards of our clients' investable capital, we focus on preservation of capital first and foremost. This discipline leads us to invest in stocks where we believe that the potential price depreciation of a stock is minimal and the upside is considerable. To identify attractive investments, we conduct a thorough, bottom-up analysis of a company's financial statements, business model, and quality of management. When we invest in companies, we do so with a long-term time horizon; we are not traders speculating on short-term moves. Rather, we view our investment commitments as if we were purchasing the entire company versus merely a small minority stake.

SOME OF THE FUNDAMENTAL CHARACTERISTICS OF OUR PORTFOLIO MANAGEMENT PROCESS INCLUDE THE FOLLOWING:

  • We consider the strength of the economy, the overall direction of the market, but are ultimately bottom-up rather than top-down investors.
  • We place intense focus on the risk side of the investor equation, not just on the potential upside.
  • We seek out companies with healthy balance sheets, positive cash flows, solid business models, and strong management.
  • We tend to be contrarian investors by purchasing stocks of companies that we believe are only temporarily out-of-favor.
  • We look for companies that have an intense focus on delivering long-term shareholder value.
  • We have the ability to customize client portfolios according to values based criteria, risk tolerance, and return goals and, in some cases, portfolio managers consider securities outside of the formal research process.