Risk Management

Our creed is that good investments are created from good companies purchased at good prices.

We take risk control very seriously. We diversify portfolios by controlling differentiation in a stringent manner. We strive to make each investment different from every other with respect to industry, operating characteristics, response to market influences and type of instrument. We avoid “concept” stocks.

Our target companies have strong financial positions and attractive long-term attributes. We invest in stocks priced at a discount to their identifiable values.

Our unique risk management system reduces risk through:

  • Stringent differentiation and diversification
  • Purchase price discipline
  • Rigorous qualification of securities
  • Customized individual risk criteria
  • Rational determination of individual asset mix

“We hold only one company in an industry and compare all others against it. People may feel it’s safer to own five companies in any one area, but this approach really just gives you more exposure.”

In conversation with the three principals