- Fundamentally-based value investing combined with opportunistic and dynamic risk management can lead to meaningful long-term capital appreciation.
- We seek to buy a portfolio of well-run companies with a demonstrated ability to generate free cash flow, allocate capital and deliver returns to investors.
- The companies in our portfolio will trade at reasonable valuation levels relative to other stocks in the market.
- Believing that loss of principal is the primary risk facing our investors, we seek to eliminate some of the drawdowns experienced by equity market investors by using an actively-managed portfolio of risk management tools.
- The Manager’s equity investment process is founded upon extensive screening followed by deep research and careful analysis.
- Investment opportunities are frequently sought in industries and sectors where compelling secular trends are coincident with favourable valuations.
- The Manager will refrain from investing until the price is low enough to allow for a satisfactory return over a defined time horizon.
- The Manager expects that a typical portfolio will be comprised of 20 to 30 securities.
Overlaying the equity portfolio, the Manager will selectively deploy limited risk derivatives strategies in an attempt to mitigate the portfolio’s vulnerability to overall declines in equity prices.
- By using options on equity indices and, occasionally, on individual securities and ETFs, the Manager will seek to implement these strategies if and when market conditions allow for their cost-efficient application. In the event of market declines, the Manager will need to actively re-balance the portfolio of hedges so as to extract value from the portfolio.
- The Manager will seek to dynamically manage the hedge portfolio in an attempt to minimize costs and optimize protection.