Our investment philosophy operates at two levels. For strategic holdings, it is grounded in the belief that long term investment performance is based on a disciplined security specific selection process. This classic approach was first utilized by investment greats like John Keynes, Benjamin Graham, and more recently Warren Buffett. For more tactical holdings, we look for temporary advantages provided by momentum, thematic investment trends, risk/return profiles, sector rotation and portfolio hedging considerations.
In evaluating a potential investment in a stock, we view ourselves as a prospective business owner. As such these investment decisions are based on extensive bottom-up research and a thorough assessment of the company, its management, and the business environment within which they exist.
We look for companies with long term growth and stability, shareholder-friendly and rational company management, a proven track record, and a price that is trading well below our estimate of its value. This approach provides you with a margin of safety on each holding and the opportunity for strong long term gains.
We also monitor on an ongoing basis the companies we invest in and their changing economic environment.