We employ classical security analysis as well as a qualitative appraisal of the company culture, management and business. We are "bottom-up", long-term investors. We have a private equity perspective and use the liquid equity market as the investment vehicle.
CONVICTION & RISK CONTROLS
- Concentrated in 25-50 securities
- Positions weighted between 1-5%
- Sector Weightings +/-10% points from benchmark
- Low Turnover: 20-30% on a three year moving average
- Full invested, cash <5%
- Investment team establishes and implements the investment strategy for all accounts.
- Portfolios are managed on a matrix system so each security has approximately the same percent in each portfolio.
- Team monitors all portfolios to ensure accurate and timely implementation of our strategy.
- Portfolios are managed on a "bottom-up" basis; however, sector volatility is important and sector variations are limited to +/-10 percentage points from the benchmark sector weighting.