Investment Philosophy

Equity Investment Philosophy

We are traditional value investors. We believe that superior returns over time can be achieved for equity portfolios through in-depth research designed to select financially strong companies with low price/earnings ratios and significant operating cash flow. We seek to take calculated risks when an informational edge gives us the opportunity to invest at a discount to what we believe to be the ultimate worth of a business. By concentrating our investments in our best ideas we are able to provide consistently successful investment results over time.

Fixed Income Investment Philosophy

We believe better returns on fixed income portfolios can be achieved over time at by using an approach which combines top-down macro analysis with bottom-up credit research to select intermediate term (2-10 years) maturities with the best relative value. Statistical studies and our own investing experience have shown that by focussing on Intermediate bonds that we can capture almost all of the income return of long bonds with significantly less principal volatility. Our process avoids interest rate predictions and market timing, focusing instead on the most attractive sectors, the best positions on the yield curve, and the relative credit risk of individual investments.