Our investment strategies are based on a highly disciplined analytical process focused on managing risk and enhancing the likelihood of achieving successful outcomes. No one can foretell the future or time the market. There’s no crystal ball to tell us what to do. We strive to reduce portfolio risk by incorporating a bottom-up, fundamental research approach with a top-down macro overlay. This enables us to respond to tactical issues while maintaining a longer-term posture designed to achieve long-term goals.
At our core, we focus on allocating equity capital to less economically-sensitive businesses that generate robust free cash flow and have a history of increasing dividend payouts. By carefully managing our time horizons, risk budget, and valuations, our strategies are transparent, tax-efficient, and risk-managed. As we say on the mountain bike trail, anybody can ride a bike downhill or when there’s a tailwind. It’s quite another thing to ride up a mountain or into a headwind. We prefer to allocate capital to timeless opportunities, not fads or businesses requiring an economic tailwind or uninformed speculation (or the latest tip from your brother-in-law or golfing buddy.)
It’s simple, really. Investment strategies should be: