INVESTMENT APPROACH

Understand the business.
Respect the price.

Our process is rooted in fundamental analysis and long-term ownership rather than short-term trading or macro forecasting.

Business quality

We seek businesses with understandable economics, durable competitive characteristics and opportunities to reinvest capital at attractive returns.

Management

We study capital allocation, incentives, operating discipline and the alignment between management and owners.

Valuation

We compare our estimate of long-term intrinsic value with the price available in the market, while recognizing that valuation is inherently uncertain.

Margin of safety

We seek situations where the range of reasonable outcomes provides an adequate margin of safety relative to the price paid.

What we generally avoid

Short-term market timing
Leverage at the fund level
Shorting individual common stocks
Investment decisions based primarily on market narratives

Risk disclosure. Investing involves risk, including loss of principal. Concentration, illiquidity, valuation uncertainty and other risks may cause substantial losses. Nothing here should be interpreted as a recommendation to buy or sell any security.