- Investment potential is identified by determining a company's long term economic value
- Economic value is a function of existing assets and future cash flow potential
Disciplined Investment Strategy
- Buy with a large value cushion
- Monitor development of investment thesis
- Employ a clearly defined sell discipline
- Focus on companies whose market value is substantially below intrinsic business value
- Strategically-focused management
- Potential to improve fundamentals
- Positioned to benefit from internal or external catalyst
- Stock Selection
- Buy the business, not the stock
- Fundamental analysis: Qualitative and Quantitative considerations
- Long term investment horizon
Selection process leads to a diversified portfolio consisting of four types of stocks:
- Turnaround Situations
- Cyclical Companies
- Transition Situations
- Emerging Companies
- Extremely compelling fundamental valuation
- A high degree of confidence in management
- Conviction in business strategy
Investments in smaller companies generally carry greater risk than is customarily associated with larger companies for various reasons such as narrower product lines, limited financial resources, and less depth in management. Distributed by Foreside Fund Services, LLC. Privacy Policy and Terms of Use
