Security Selection

We seek investments where the majority opinion is most flawed—in regards to the level or persistence of returns or the value of assets. We evaluate the dynamics of asset worth, return structure and current business condition to understand the worth of a business.

Once we have identified candidates for in-depth research through our screening process, we will focus on understanding in terms of asset value, return structure and competitive advantage. Our analysis of business worth will be tied to a valuation of future cash flows. While we do not seek ‘catalysts’, we do seek to understand as explicitly as possible where the market’s perception is flawed. While not seeking catalysts, we do seek to avoid the opposite—situations where negative events are still coming to fruition.