investment criteria
We run a global long-biased equity strategy, which employs a rigorous, bottom-up fundamental approach to find high-quality businesses with strong organic growth, predictable earnings, capital efficiency, and prudent management.
We look to purchase companies with leading industry positions that can thrive in a variety of economic conditions.
We buy companies that are “compounding machines,” which can grow their intrinsic values over a multi-year period.
portfolio construction & Risk mitigation
We believe that a concentrated portfolio of high conviction ideas is the only way to significantly outperform relevant benchmarks over the long term.
New positions must meet our rigorous criteria for business quality, financial performance and operational standards.
We seek to manage risk through quality stock selection and not ineffective financial engineering.
We believe that risk can be mitigated by emphasizing business quality, seeking a margin of safety, using minimal leverage, avoiding speculative securities and maintaining a liquid portfolio.