Equities

Our equity portfolio management team follows a disciplined, value-based approach that offers favorable risk and reward characteristics.

Our equity portfolio management team achieves results through:

A repeatable stock selection process
We developed our stock selection process to be consistent and scalable. Our team leverages its collective experience along with a set of proprietary tools to assess each new portfolio candidate early in the research process. Our goal is to eliminate stocks that do not meet our qualitative and quantitative standards, and to focus on understanding the critical value drivers of the company. We demand each portfolio decision to be unanimous as we believe this reduces risk without harming a team members' ability to think creatively and pursue scarce opportunities.

Active risk management
Risk management is inherent to our investment process. We seek out only high-quality companies and actively attempt to "pick apart" ideas before we commit capital. As prices fluctuate, we continually evaluate our investment thesis behind each position. We trim positions as they approach our intrinsic value estimates on the upside, and challenge positions on the downside that may potentially lead to a loss of capital. We remember Benjamin Graham's advice that the stock market is here to serve us, not to instruct us.

An independent point of view and long-term perspective
The increasing diversity of market participants, such as passive, high turnover, levered and quantitative strategies help to create price volatility that benefits the active value investor. Our independent point of view and long-term perspective, combined with our emphasis on superior business models, strict valuation discipline and dynamic risk management, gives us a competitive advantage in today's markets.

Stock Selection Process