Through our fundamental, value-oriented investment process we aim to buy securities of predominantly well-financed companies that trade at substantial discounts to our conservative estimates of intrinsic value. The portfolio is unconstrained by geographic, industry, or index considerations, resulting in a portfolio that is built from the bottom up and based on the best absolute value opportunities currently available. We believe that this investing discipline provides investors with a unique portfolio, long term price appreciation potential, and mitigated downside risks.
Focus on well-capitalized companies. We believe that companies with well-capitalized balance sheets have an enhanced ability to survive difficult periods and thrive over the long-term, providing us the opportunity to achieve higher valuations and compound value over the long term.
Opportunistic mandate. We have significant flexibility in terms of where the strategy can invest and tend to invest in less-followed companies. We have the ability to invest across the capital structure, allowing us to take advantage of opportunities that are unavailable to equity-only portfolios.
Bottom-up portfolio construction. We build the portfolio completely from the bottom up, not based on any Index. Because of this, our portfolio’s overlap with indices tends to be very low and country and sector exposures tend to be very different from the Index and our competitors.
Concentrated portfolio. The strategy generally has a concentrated portfolio of thoroughly researched opportunities, which allows us to focus on our highest conviction ideas and can result in a portfolio and performance that is significantly different from most Indices.
Long -term investment horizon. We are patient, long-term investors. We seek to take advantage of significant stock price declines due to poor near-term business results, focusing instead on the long-term intrinsic value of the business and its underlying assets.
Flexibility to invest when opportunities are most compelling. Our mandate allows us to hold a sizeable cash position. We believe that holding cash at times when underlying valuations are elevated provides us with the ability to act quickly when market sentiment swings to the other extreme and short-term market disruptions provide compelling opportunities from panicked sellers.