Private Funds & Separately Managed Accounts
Investment Philosophy
Well-managed businesses with a sustainable competitive advantage, superior capital allocation, and attractive long-term growth prospects, trading at a fair valuation.
Transparent, scalable measurable, and repeatable investment process that seeks to minimize irrational and emotional investment decisions.
Principles we seek in a business
We blend a data-driven, principles based investment approach with decades of investment experience.
- Our computer models quantify our investment principles into well-defined financial metrics and sort through thousands of financial statements and companies in real-time.
- Our investment professionals apply the same principles to analyze and audit investment ideas.
We want managers who focus on per-share value rather than sales or earnings, advocate for decentralized operations, follow cash flow based metrics, and authorize significant repurchase programs at opportune times.
Companies that are dominating and growing their market share will benefit from superior unit economics over the long-term. We want platform companies that create a network effect as they grow.
We seek companies that consistently achieve higher reinvestment rates on their capital than the comparable market return rate.
We seek companies that can achieve long-term organic growth in revenue and/or owner earnings.
Markets fluctuate and economic cycles come and go. Companies with strong finances are better prepared to adopt to ever-changing circumstances and to use market downturns to expand their market share.
Great businesses rarely trade at an attractive valuation relative to the market, but stock prices fluctuate and we seek to take advantage of that at opportune times.
"The stock market is a device to transfer money from the impatient to the patient."
Warren Buffett
"The investor's chief problem - and his worst enemy - is likely to be himself. In the end, how your investments behave is much less important than how you behave."
Benjamin Graham
"Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves."
Peter Lynch
Market Commentary
Founding Principles
We endeavor to treat others the way we would want to be treated. Transparency and openness is our stated policy.
Just like investments, knowledge compounds over time. Our professionals enjoy learning and proactively seek to broaden their intellectual horizons.
Profits are the reward of creating value for clients. Our culture of giving back to the community will be funded by company profits.
