Our Approach to Investing

We believe that long-term risk-adjusted performance is best achieved by combining seasoned judgment with a well-defined and disciplined investment process.
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We do our own research and analysis, in addition to reviewing many different third-party informational resources. And we maintain discipline on both the buy side and the sell side, constantly monitoring macro factors (such as market trends, interest rate forecasts and economic conditions) while also directly monitoring the business and financial health of securities issuers.

We are highly conviction investors. While diversified, our portfolios tend to include a limited selection of those securities that we believe represent the absolute best of what we have uncovered in our analysis.

The Principles of our Investment Philosophy​

While we offer strategies that range from aggressive to defensive, the principles of our investment philosophy remain the same:​

Identify value

Our strategy is to find securities that have a lower price than their true value. This creates an opportunity for growth in capital and superior returns over time with reasonable protection of the principal.

Capitalize on “positive asymmetry”

Our investment areas share features that enable us to increase their value while reducing the risk compared to other investments. We aim to create portfolios that can endure market fluctuations and minimize losses in unfavorable conditions, while benefiting from gains as markets rise.
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Balance risk and reward

Our discipline involves monitoring and evaluating the risk/reward profiles of each security and the whole portfolio. We also identify potential catalysts that could affect our confidence in any position. We take profits and limit losses as a crucial part of our discipline, especially for our more conservative portfolios

Invest in what we know.

We prioritize delivery performance for our clients over accumulating most assets. Our size gives us two main benefits: we can manage portfolios that only include our "best ideas", and we can operate in market sectors that are usually ignored by larger firms.
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Buy for the long term.

We invest in companies that have a solid record of accomplishment and a bright future. We trade only when we see an opportunity to enhance our performance.

Commit to performance.

We prioritize delivery performance for our clients over accumulating assets. Our size gives us two main benefits: we can manage portfolios that only include our "best ideas", and we can operate in market sectors that are usually ignored by larger firms.
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Why We Believe in Active Investment Management

Passive management is a popular trend in investing nowadays. It can be a sensible choice in some situations. For instance, an employee who wants to invest in a workplace retirement plan might benefit from a low-cost, large-cap index fund rather than an actively managed fund with high fees and a mediocre record of accomplishment.
However, there are still many parts of the market that are not very efficient, and where active management can potentially perform well. We concentrate on those parts.
Sometimes, these parts may be a specific type of securities, such as convertible securities. Other times, there may be opportunities in certain under-researched stocks, such as small bank stocks or REITs that have a particular combination of features that we find appealing.
For clients who prefer to have some passive investments in their portfolio, we are glad to recommend those that we think are suitable. But as long as we see places where active management can offer real value, that’s where we will keep looking for ways to use our expertise and provide value in a way that a passive investment cannot.