Managing risk drives our research process.
To quote the father of value investing, Benjamin Graham: “The essence of portfolio management is the management of risks, not returns. All good portfolio management begins and ends with this premise.”
We are value investors seeking to purchase securities at substantial discounts to their intrinsic value. We are flexible in our approach and are able to pursue a broad array of investment opportunities in various industries, geographies, and company size.
Our research-intensive process begins with ideas generated from a variety of sources including business publications, industry conferences, company management teams, competitors, customers, and contacts we have established relationships with over the past 30+ years.
After an idea is generated, an intensive financial analysis is conducted evaluating the firm as well as its competitors. If the stock price is substantially below our valuation, we continue the research process. Additional interviews and meetings are conducted with the company as well as competitors, customers, suppliers, consultants, etc.
This primary field-based research supplements and enhances our understanding of the company’s core financial characteristics and the fundamentals of the industry in which it operates. In fact, many of our best ideas have come from our field-based research speaking with competitors, customers, suppliers and other knowledgeable industry experts.
Our in-depth research process is conducted in order to further enhance our knowledge of the company and its industry, leading to risk reduction, with greater clarity and conviction in our investment decisions.