Firm Overview - A Message from our Chief Investment Officer
Imagine a world with no challenge to the status quo. A world without automobiles, bridges, high rise buildings, or the internet. That was not a world acceptable to my great grandfather. As an engineer and pioneer in construction technology Ernest L. Ransome developed, and patented (US Patent 305,226) the “Ransome System” the first reinforced concrete technology which used twisted steel cables for reinforcement. His willingness to look at a ubiquitous problem and devise an ingenious yet obvious solution led to the first reinforced concrete bridges and buildings in the United States. How does this apply to investment management, you may ask? The connection relates to the commitment to independent thought, the inclination look objectively at possibilities, the courage to honestly calculate risks, and a commitment to seek fact based solutions plainly before one’s eyes. We strive to honor and build upon our family legacy in and through our work as investment managers.
Our firm philosophy centers around the understanding that humans are inherently irrational and the corresponding belief that markets are therefore inefficient. Market inefficiency provides deliberate and objective thinkers the opportunity to generate meaningful excess returns. However, as evidenced by the infrequency of sustained outperformance on the part of active managers over time, capitalizing on market inefficiency requires far more than mere intellectual assent. Intelligence, preparation, diligent research, fortitude and discipline are vital ingredients; however, success requires both a thorough bottom up-issue specific analysis and an accurate top down-meteorological assessment to provide understanding of the environment within which the portfolio holdings will operate. Success requires the willingness to maintain conviction and ignore chatter, while simultaneously maintaining the flexibility to change one’s mind as facts change. To that end, we do not believe a successful investor necessarily need possess the highest IQ but rather the proper temperament and a disposition characterized by a balance of grit, objectivity and humility.
We are mindful of the faith our clients place in us and strive daily to honor that trust and confidence. Our governing principles center around our commitment to openness, honesty, teamwork, collaboration and full disclosure. The bedrock of our principles is our obligation to treat our clients as we would like to be treated and their capital as we treat our own. You can take comfort in knowing that the majority of my family’s net worth is invested alongside yours.
Dawson A. Ransome, CFA