The Fund seeks to achieve superior risk-adjusted returns by implementing a private owner investment philosophy with a longer-than-average time horizon.
Private owner mentality focused on companies selling at a significant discount to our estimate of their underlying value.
Longer time horizon provides what we believe to be a significant competitive advantage as time horizons for many investors have shortened dramatically.
Preservation of capital is emphasized by investing in businesses we believe to be significantly undervalued.
Price is a primary consideration, relative to reasonable expected growth.
Investment discipline applied confidently and consistently regardless of short-term market events.
- Competitive position screen to create an investment universe of investable companies.
- Regularly monitor universe, update with additions and subtractions based on independent research.
- Quantitative screens.
- Fundamental financial analysis.
- Emphasis on sustainable free cash flow levels and balance sheet strength.
- Each idea vetted through proprietary qualitative and quantitive checklist.
- No group think.
- A “position entry” price is established.
- Determine position size.
MONITORING & EXIT
- Re-examine original thesis.
- Track financial results vs. original expectations and compare to current valuation.
- Exit position when price target is reached or original thesis is deemed incorrect.