“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” – Aristotle
After identifying and conducting our in-depth research analysis, we build a concentrated portfolio using a bottom-up stock selection process. Our unique valuation expertise provides us with the perspective to assemble a portfolio which provides a blend of the best companies we believe to be fundamentally undervalued given price dislocations and the inherent risks presented in the market. Additionally, we adhere to internally created parameters which are designed for each equity strategy. These parameters are in place to properly diversify holdings and to assist in mitigating portfolio risk:
• Portfolio sector weighting between 50% – 200% of the relevant benchmark’s sector weight
• Number of positions between 35 – 45
• Initial position size is generally at 2.7%
• Typically, no position can represent more than 6%
The macro economic outlook is an overlay to the stock selection process rather than a guide. We evaluate sector and position exposures carefully as we seek to ensure proper diversification in consideration of the entire portfolio. Portfolio composition is continually monitored and adjustments are made as fair value estimates and the margin of safety change due to market fluctuations.
Specific decisions for the strategies are made ultimately by the respective Lead Strategist. Their decisions are based on internal research and on recommendations of the investment team in consideration of the entire portfolio’s holdings.