Our long-term, fundamental and contrarian investment philosophy is simple to understand but can be difficult to execute. We have therefore designed our investment process to maximize the chances that we can successfully and consistently implement that philosophy on our clients’ behalf.
We believe contrarian investment decisions are best made by individuals, not groups. Our investment process has therefore always encouraged individual thinking and accountability. We use paper portfolios to enable our analysts to express unequivocally their best ideas and to be held accountable for their recommendations, and those who demonstrate stockpicking skill are given more responsibility.
Our process provides a disciplined framework that enables us to focus on only the most promising investment ideas, to develop a high degree of conviction before we commit our clients' capital and to remain invested through periods of volatility.
Our analysts typically begin their search for investment ideas by using a variety of qualitative and quantitative tools to identify stocks that are potentially trading well below intrinsic value. We view quantitative analysis as an enabling technology that harnesses our investment philosophy in a systematic and scalable way. Such tools include our internally-developed models and flexible screening tools that each analyst can tailor to their specific needs.