We believe that discipline is essential to maintain a successful and sustainable investment strategy. Therefore, a disciplined approach is at the core of our investment strategy. The five key tenets of our discipline are:
- Our most important mission is the preservation of our investors’ capital. We approach every investment with a healthy skepticism, and take the position that there are no blue chips.
- Sound underwriting is the foundation on which we build our portfolios.
We believe one is much more likely to find value when paying attention to fundamentals. We avoid trends and do not chase momentum.
- Timing is critical. Many investors buy near the peak of a market and then hold on too long. Our discipline is to buy low and then sell in premium markets, generating premium returns. Being small and privately-held enables us to act quickly.
- Risk is unavoidable, but we never magnify it with excessive leverage.
Our debt-equity ratios are far more conservative than the industry average.
- When we don't see solid opportunities, we wait, patiently, as we did during the market turmoil of 2007 and 2008, believing that a protected upside is preferable to a significant downside.
