Fundamentally Focused

Investment Philosophy

We are intrinsic value investors. We invest in quality businesses with good fundamental prospects that trade at a discount to their intrinsic value. Our objective is to invest in companies as owners of businesses and not as traders of stocks. We focus on a limited number of high conviction ideas that meet an absolute return hurdle rate. We believe our approach will not only preserve our clients’ capital, but also provide long-term returns that will exceed those of the broad market. As intrinsic value investors, we are highly focused on understanding the sustainability of a company’s profitability and revenue growth prospects, which are the key drivers of future free cash flow generation. Traditional value investors are often attracted to statistically cheap stocks, while many growth investors are insensitive to valuation. Both approaches are susceptible to permanent impairment of capital, as stocks can be cheap for the right reasons and significantly overpaying for a company is the surest way of suffering permanent loss. We believe that investing in quality businesses that trade at a discount to their intrinsic value offers investors both a quantitative and qualitative margin of safety as well as a source of long-term return potential. We also believe our long-term focus and global orientation truly differentiate us from other managers.

Preservation of Capital

Seek to minimize risk through long-term fundamental analysis and a margin of safety

Reinvestment Potential

Businesses that can enhance economic value by profitably redeploying capital

Economic Moat

Businesses that have sustainable competitive advantages

Management Quality

Management with a strong shareholder-oriented culture

Intrinsic Value Investors

Long-term orientation with a private market approach to publicly traded companies

Sustainable Financial Position

Strong balance sheets and free cash flow generation