Investment Approach - Overview
We believe that humans are inherently irrational and markets are therefore inefficient. Market inefficiency provides deliberate and objective thinkers the opportunity to generate meaningful excess returns. As passive investment products have proliferated price discovery has been compromised, at best. The prevalence of algorithmic computer trading models has served to increase short term volatility while also compressing the time-frame of reactions to information and events. As a result, meaningful disparities may exist between market price and intrinsic value for many issues, providing active managers the opportunity for outperformance.
In order to generate excess return, a portfolio must be differentiated from its benchmark. For that reason, we invest and trade primarily in domestic corporate public equity across the entire capitalization spectrum without significant regard to sector or industry weight conformity. We implement our strategies using actively managed concentrated equity portfolios and an opportunistic, research-driven, fundamentally based, value-oriented, risk-controlled approach. We seek to identify potential investments that trade at significant discounts to our assessment of intrinsic value, have a durable advantage, and exceptional culture.
Investment Philosophy | Investment Process | Defining and Controlling Risk