Through our fundamental, value-oriented investment process, we aim to buy securities of predominantly well-financed companies that trade at discounts to our conservative estimates of intrinsic value. The portfolio is unconstrained by geographic, industry, or index considerations, resulting in a portfolio that is built from the bottom up and based on what we view as the best absolute value opportunities currently available.

Our valuation methodology focuses on the here and now rather than projections, given our limited use of macro forecasting. We believe that this investing discipline provides investors with a unique portfolio, long-term price appreciation potential, and mitigated downside risks.

• Typically weigh the Balance Sheet more heavily than the Income Statement.
• Embrace market risk as a source of opportunity.

• View each investment as a partial ownership stake in a firm.
• Seek to own stakes in a collection of attractive businesses.
• Prefer situations without significant business or financial risk.

• Focus on the business, the industry it operates in, its valuation and investment risks, etc.
• Make portfolio construction decisions independent of index composition.

• Focus on individual business risk.
• Avoid aggregation of risks at the portoflio level.