Our Investment Approach
Our approach is based on the belief that selective investments in diverse growth businesses with superior operating and financial characteristics have the potential to generate excess returns with below-market risk over time. We believe risk is systematically mispriced and that analysis targeting low-risk equities can improve the probability of long-term outperformance.
Business Characteristics We Favor
- Durable competitive advantages
- High returns on, and efficient use of, capital
- Demonstrated low volatility in financial and operating metrics
- Low exposure to cyclical trends
- Capital allocation discipline
Portfolio Construction & Risk Management
We maintain a model to drive our asset allocation. The Fund is generally fully invested and is composed of a diversified set of 25-30 small and mid-cap stocks exhibiting what we believe to have the best risk/return outlook.
Positions maybe reduced or sold if:
- Valuations are excessive
- Sector or position limits are exceeded
- Business volatility increases
- Superior investments are identified
- Original investment thesis fails