Our process typically results in an aggregate portfolio that is less expensive than the overall market, but with better growth, margin, return, and leverage characteristics.
Diversification
- Our process results in diversification that is appropriate to the opportunity set.
- Holdings are typically 50-100 names.
- Rarely would any one position exceed 5% of the portfolio.
Sector weightings
- We have representation in every major sector, but do not slavishly replicate the sector weightings of any benchmark.
- We believe a “sector-neutral” approach can lead investors to deploy capital to the wrong sectors at the wrong time.
- Our sector weightings are mostly a function of where we see the opportunities at any particular point in time. They are an output, not an input, of the process.
Historically our portfolios have partially participated in frothy markets, thrived in flattish markets, and acted defensively in down markets.