Guiding tenets

• We seek optimal risk-adjusted returns, with a focus on preservation of capital.
• We strive to separate reality from current perception, and monetize the difference.
• Our substantial experience and track record is a huge advantage in forming these judgments.
• Our process is relatively easy to understand, and completely replicable.

Fundamentally driven

• Our portfolio is the result of fundamental data informed by the judgment of our PMs.
• For each investment we create a “mosaic” from insights gleaned from a variety of sources.

Value Approach

• We seek quality at a discount: Companies with favorable characteristics that have been temporarily discounted by the market due to:
  • Issues of misperception
  • Fundamental challenges we deem to be transitory
• We have a forward-looking approach: balances price and prospects.
• Our valuation criteria are sector-dependent, not “one size fits all”.
• Our approach results in a “classic value” portfolio.  

Investment style

• We like competitive advantages, attractive industry structures, and healthy capital structures.
• We only invest in generators of normalized Free Cash Flow (FCF).
• We seek out the best stewards and deployers of capital, who think like shareholders rather than entrenched managers.
• These characteristics tend to result in a relatively high return on invested capital (ROIC).