Our objective is to focus on high return on capital businesses, reduce speculation and build efficient portfolios. In so doing, we anticipate lower downside risk, reduced volatility of returns and higher conviction portfolios where our strongest views contribute meaningfully to returns.
Step 1 – Idea Sourcing and Fundamental Analysis
- Systematic screen
- Balance Sheet Optimization
- Private market value
- Management actions and governance
Step 2 – Portfolio Construction
- Team-based decision making process
- Avoid over-diversification
- High conviction position weights
- Sector and position size risk controls
Step 3 – Sell Discipline
- Management misallocation of capital
- Fundamental deterioration
- More attractive candidates
- Significant insider selling
- Soft stop-loss
Risk management is an ongoing process, woven into all stages of portfolio management.
