Our approach to investing is different. As a group, we share a core belief that thoughtful and persistent research coupled with disciplined risk-taking will yield outsized returns over a long period of time.
We believe that proprietary research yields a competitive advantage. Broadly defined, our interests lie within smaller companies and special situations. Our investment premise is that the universe of lesser-known companies is largely inefficient. Often, the companies that we find attractive are not widely followed by the investment community. Our work, therefore, must be both pioneering and perceptive, grounded in carefully measured assumptions.
We spend our time studying companies, and our client portfolios reflect the best opportunities we find, assembled stock by stock. We meet with management teams and travel to companies’ headquarters and facilities to better evaluate businesses, plans for growth and incentives. We augment these visits by conducting further conversations with employees, suppliers, partners and competitors. We attend trade shows, conferences, read industry-specific publications and speak to numerous analysts to build an information mosaic around the companies we follow. Our craft is to understand the microeconomics of a business, and then synthesize information about the competitive, economic, and internal factors to determine which issues represent opportunities or potential dangers. The ability to capitalize on these opportunities and respond quickly requires intensive focus and timing can prove crucial.
We believe so deeply in what we do that we invest our own money the same way we invest our clients’ money.