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Investment Process


Generation of Ideas: The firm employs in-house research using a bottom-up, fundamental approach to identify attractively priced companies worldwide.

Screening: Both US and International markets are screened via databases using value oriented criteria to determine which sectors and industries are selling at attractive prices.

Fundamental Analysis: Original source material (Annual Reports, Proxy materials, SEC Filings, & industry reports) are studied and reviewed for quantitative and qualitative purposes.

Determining Intrinsic Value:  Balance sheets, income and cash flow statements are analyzed to determine an estimate of the intrinsic value or measurable worth of a company. Intrinsic value is that value which is justified by the facts, e.g., assets, earnings, dividends, definite prospects, including the factor of management.

Portfolio Construction: We generally own 25-35 stocks in the portfolio. We hold concentrated positions for two main reasons. Concentration lowers our risk of losing capital because we limit the portfolios to our best ideas and enables each company to have a meaningful impact on our investment results. We are not beholden to index sector weightings and aim to stay fully invested with low portfolio turnover over a multi-year time horizon.

Sell Discipline: Estimates of a company’s intrinsic value per share are established before purchase and re-evaluated periodically during the holding period. Common stocks are sold if a reassessment were to determine that intrinsic value was mistakenly over estimated, a better prospective investment has appeared or the price has reached our appraisal of intrinsic value.